ZKsync Proposes New Token Model to Solve Crypto's Fragmentation Problem

Source: CoinEdition Original Title: ZKsync Wants to Fix Crypto’s ‘Silo’ Problem With a New Token Model; ZK Interop Original Link:

The Pivot and Revenue Model

ZKsync founder Alex Gluchowski has proposed a new utility token model for the innovative Ethereum-based protocol. In his latest proposal, the renowned innovator outlined a strategic shift:

• The Pivot: Founder Alex Gluchowski proposed shifting $ZK from governance to a fee-capturing utility token.
• The Model: Revenue from cross-chain messaging and enterprise licenses would fund token buybacks.
• The Goal: To monetize the “ZK Gateway” as a unified settlement layer for institutional finance.

Gluchowski noted a coordination problem in the financial sector, particularly the incompatible messaging networks upon which global finance runs. Messages that facilitate financial transactions across the globe are trapped in incompatible silos, thus needing the services of expensive trusted intermediaries.

The ZK Gateway Revenue Model

After outlining the various stages in the messaging process and their associated costs, Gluchowski resolved that streamlining financial messaging can unlock enormous economic value. According to him, the lack of a shared, verifiable coordination layer forces institutions to reconcile data across many systems, driving operational cost, risk, and delays.

Gluchowski’s latest proposal, ZK Interop, aims to become the foundation for direct institutional connectivity. The renowned innovator describes it as a game-changer, with implications that extend far beyond payments. For instance, the solution can synchronize multi-bank instructions and acknowledgments in treasury and express authorization and clearing messages as verifiable receipts in card networks.

According to Gluchowski, the ZK Interop can collapse costly, multi-step post-trade confirmations and settlement processes into verifiable, near-atomic events between chains when dealing with securities, and coordinate ISO-20022 messages and eventually PvP settlement in cross-border transfers.

Industry Validation

Circle’s CEO, Jeremy Allaire, while describing the importance of messaging in the financial industry, noted that money velocity will expand in step with information velocity. He believes that economic throughput will scale non-linearly as soon as message coordination between systems approaches near-zero latency.

Gluchowski’s goal is to use the proposed innovation to collapse the latency for institutions, turning the current fragmented, slow message chains into instant, verifiable coordination.