[Discussion] Where is the value for ZK holders? It’s time to rethink TPPs, dilution, and Matter Labs’ revenue

General
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Hi everyone,

I’m writing this because many of us who have held ZK through thick and thin are reaching a breaking point.

Over the past year, we have watched proposal after proposal (TPPs) pass through governance. The logic is always the same: mint more tokens to fund committees, operations, security councils, and ongoing initiatives. But let’s be honest about what is actually happening:

  1. Holders are paying for everything through dilution. Every time millions of ZK are minted to fund USD-denominated budgets while the token price drops, existing holders absorb the entire cost. We are effectively treating the token as an infinite company credit card, funding a small loop of recurring recipients while holders get zero return on investment.

  2. Zero value accrual for the people holding the network. Despite all the tech milestones and chain activity, not a single cent of sequencer revenue or network fees flows back to the token. Those of us who believed in the project and didn’t sell are simply left holding the bag.

  3. Public costs vs. Private commercialization. While public token holders finance the development and maintenance of the ZK Stack through relentless dilution, Matter Labs is actively working with enterprise and private chains. Are these commercial deals generating private revenue? If yes, why are the costs socialized onto public holders while the value is privatized?

  4. Centralized voting power. With a ~21M proposal threshold and a handful of institutional delegates controlling outcomes, the wider community has practically zero voice. Proposals pass with low turnout, rubber-stamping recurring budgets without clear accountability or performance metrics.

What needs to happen:

  • Pause non-essential TPPs: Put a freeze on recurring operational mints until we see a full financial breakdown and clear ROI metrics.

  • Reward real holders: Redirect a real percentage of network/sequencer fees into value accrual (buybacks, burns, or yield/staking models) specifically designed to protect long-term holders.

  • Commercial transparency: Matter Labs needs to clarify how private enterprise use of ZK Stack benefits the $ZK token itself.

Let’s discuss:

  1. What is the fastest and most effective way to start sharing network value (sequencer fees, buyback/burn, staking) with long-term holders?

  2. Is Matter Labs generating revenue from private/enterprise ZK Stack deployments? If so, why doesn’t any of that flow back to the token that funded the core tech?

  3. Should we freeze all recurring budget TPPs until we have a proper financial audit and a clear plan to protect token value?

Looking forward to hearing thoughts from both holders and delegates.

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