Solana co-founder Anatoly Yakovenko has expressed concerns about the governance structure of the Ethereum layer-2 network ZKsync, stating that it still operates like a multisig system despite claims of community-led governance.
Yakovenko took to X (formerly Twitter) to argue that ZKsync’s system could potentially be compromised by legal or technical control falling under the jurisdiction of a court, thus undermining its decentralization.
In his words:
“Enough of the token holders to create a quorum and enough of the ‘professional security council’ could be within reach of a rando US bankruptcy judge that could order all of them take all the bridged assets under control of a bankruptcy trust.”
These remarks were prompted by Alex Gluchowski, co-founder and CEO of Matter Labs, defending ZKsync’s new decentralized governance system, which he claimed was not a multisig setup and marked a significant move towards Stage 2.
Stage 2 signifies the transition from partial to full decentralization, where trust is solely placed in the blockchain’s code and algorithms to ensure openness, security, and resistance to manipulation.
It is worth noting that no Ethereum layer-2 network has yet achieved complete Stage 2 decentralization.
Decentralized governance
On Sept. 12, Gluchowski announced the launch of ZKsync’s governance system.
The system incorporates a three-body structure, including the ZK token assembly comprised of token holders who delegate voting power to delegates. These delegates can propose and vote on protocol, token, and governance upgrades.
As per the team:
“This is perhaps the most important facet of the system: token holders and their Delegates can initiate ordinary upgrades to the ZKsync protocol directly onchain, instead of relying on a single multisig.”
Furthermore, Delegates are protected legally through the ZKsync Association, a non-profit entity without ownership that addresses personal liability concerns.
The second component of the governance structure is the ZKsync Security Council, consisting of engineers, auditors, and security experts. The Council has the authority to review and approve protocol upgrades, freeze the protocol, and propose time-sensitive upgrades.
However, their power is limited as they cannot unilaterally submit and approve upgrades.
Lastly, the ZKsync Guardians ensure that governance proposals align with the principles of the ZK Credo. They hold veto power and act as a check on other governance bodies.
The three governance entities—the Token Assembly, Security Council, and Guardians—collaborate to review and implement proposals, such as ZKsync Improvements, Token Programs, and Governance Advisory changes. The Token Assembly can propose, which the Guardians can veto if necessary, and the Security Council must approve protocol upgrades.
Essentially, this structure prevents any individual or group from having unilateral control over proposals and upgrades.