Ethereum’s First ZK-Rollup ZKsync Lite to Shut Down in 2026
ZKsync has announced plans to deprecate ZKsync Lite, Ethereum’s first zero-knowledge rollup, in 2026 because the protocol shifts its focus completely towards the ZKsync community and ZK Stack-powered chains.
The authentic Layer 2 solution, which launched in December 2020 as a groundbreaking proof-of-concept, will endure an orderly sundown after serving its function of validating essential concepts for manufacturing ZK methods.
No fast motion is required from customers, as ZKsync Lite continues to function usually, with funds remaining safe and withdrawals to Ethereum’s Layer 1 functioning all through the deprecation course of.
The ZKsync Association will share detailed migration steerage, particular dates, and a complete deprecation plan in the approaching yr.
In 2026, we plan to deprecate ZKsync Lite (aka ZKsync 1.0), the unique ZK-rollup we launched on Ethereum.
This is a deliberate, orderly sundown for a system that has served its function and doesn’t have an effect on another ZKsync methods.
— ZKsync (@zksync) December 7, 2025
From Pioneer to Legacy System
ZKsync Lite emerged as the primary zero-knowledge rollup on Ethereum, pioneering know-how that might later evolve into ZKsync Era and the Elastic Network.
The protocol addressed Ethereum’s basic challenges of high transaction charges and gradual transaction processing by executing transactions off-chain and submitting cryptographic proofs of validity again to Layer 1.
The venture gained vital momentum in November 2025 when Ethereum co-founder Vitalik Buterin publicly endorsed ZKsync following its Atlas improve, describing the work as “underrated and beneficial.“
His backing catalyzed institutional adoption, triggering a 50% surge in ZK token costs whereas positioning ZKsync as central to Ethereum’s “Lean Ethereum” scaling technique.
ZKsync developed from its preliminary Lite model to ZKsync Era in March 2023, turning into the primary publicly accessible zkEVM.
The June 2024 ZKsync 3.0 upgrade remodeled the ecosystem from a single Layer 2 into the Elastic Network, an interconnected system of autonomous ZK chains sharing liquidity and safety via cryptographic proofs fairly than conventional bridges.
Institutional Traction Validates ZK Technology
While ZKsync Lite phases out, the broader ZKsync ecosystem has attracted main institutional curiosity.
Deutsche Bank is developing an Ethereum Layer 2 blockchain utilizing ZKsync know-how as a part of Project Dama 2, which entails 24 monetary establishments testing the blockchain for asset tokenization beneath Singapore’s regulatory sandbox.
UBS additionally conducted a proof-of-concept for its Key4 Gold product utilizing ZKsync Validium, testing the platform’s means to help tokenized gold investments with privateness and scalability.
Tradable has additionally tokenized $2.1 billion in institutional-grade non-public credit score on ZKsync, accounting for practically 90% of the community’s market share for real-world asset protocols.
The Ethereum Foundation launched “Ethereum for Institutions” in October 2024, offering enterprises with structured pathways to blockchain adoption utilizing zero-knowledge proofs, totally homomorphic encryption, and trusted execution environments.
Projects like Chainlink, RAILGUN, and Aztec Network pioneer privacy-preserving sensible contracts that safe counterparty data whereas sustaining transparency.
Security Incidents Test Platform Resilience
The deprecation announcement follows two vital safety breaches in 2025 involving ZKsync’s protocols.
In April, an attacker exploited admin entry to the airdrop distribution contract, minting 111 million unclaimed ZK tokens price roughly $5 million through the protocol’s token distribution to ecosystem individuals.
The hacker agreed to return 90% of the stolen assets in exchange for a 10% bounty, transferring practically $5.7 million again to the ZKsync Security Council throughout the designated 72-hour protected harbor window.
The recovered quantity exceeded the unique stolen worth due to token value will increase, with ZK gaining 16.6% and ETH rising 8.8% following the incident.
The @TheZKNation has recovered $5 million price of stolen tokens following a safety breach on April 15.#ZKsync #Hackhttps://t.co/sb7iC0RqoR
— Cryptonews.com (@cryptonews) April 24, 2025
Just one month later, hackers compromised the official X accounts of ZKsync and Matter Labs, spreading false regulatory warnings claiming SEC investigations and Treasury Department sanctions.
The attackers additionally printed phishing hyperlinks selling a faux ZK token airdrop designed to drain customers’ wallets, inflicting the token value to drop roughly 5% regardless of a previous 38.5% weekly rally.
The breach occurred via compromised delegated accounts with restricted posting privileges, which have since been disconnected.
These back-to-back incidents contributed to broader trade issues, as crypto hacks resulted in $1.6 billion in losses through the first quarter of 2025 alone. The quarter was among the many worst for crypto safety breaches in historical past.
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