ZKsync Cancels 'Ignite' Season 2 for DeFi Incentives

# ZKsync Halts Ignite DeFi Incentive Program Amid Market Caution ZKsync, a prominent player in the decentralized finance (DeFi) sector, has announced that it will not proceed with Season 2 of its DeFi incentive program, 'Ignite.' The decision comes as the company adopts a more conservative spending strategy in response to recent market conditions. In a recent announcement, ZKsync stated that the remaining rewards under the existing program will be distributed by March 17, 2025, with no additional incentives or rewards planned thereafter. # Strategic Shift in Focus The DeFi Steering Committee (DSC) of ZKsync explained that while the Ignite program significantly contributed to ZKsync Era’s DeFi liquidity, the continued focus on a single-chain program does not align with the company’s long-term goals. The committee added that implementation of native interoperability technology is taking longer than anticipated, limiting the immediate effectiveness of securing additional Total Value Locked (TVL). # Prudent Budget Management During Market Downturn The DSC emphasized the necessity of cautious budget management amid the ongoing market downturn. "ZKsync has decided to adopt a conservative spending strategy in the short and medium term," the committee stated. "In an uncertain market, it is crucial to focus and prioritize for sustainable operation." Season 1 of Ignite saw significant achievements, with ZKsync Era’s DeFi TVL rising from approximately $100 million on January 1 to $270 million, and stablecoin swap slippage improving to 1 basis point. # Acknowledgement of Community Support The DSC acknowledged that the careful structuring of incentives in Season 1 translated into tangible outcomes, expressing gratitude to the community for their contributions. # Future Plans Looking ahead, ZKsync plans to focus on expanding its ecosystem through improvements in the Elastic Network and enhancements to tokenomics.