Blockchain News

zkSync and its Efforts to Recover 921 ETH: The How and Why of it All

After the Gemholic ecosystem met a difficulty, zkSync, the layer two scaling solution for Ethereum [ETH], faced yet another hurdle. Gemholic uses the zkSync protocol, and 921 ETH from its recent presale was caught in a smart contract owing to a user mistake. 

Gemholi contacted the protocol, which was designed to speed up transactions and save gas costs. As a result, zkSync deemed it essential to make the update public.

Following the event, the Zero-Knowledge (ZK) initiative assured investors their money was secure. However, explaining the source of the freeze took some time. The Gemholic presale took place during the zkSync Era, according to zkSync.

It is worth noting that the protocol includes the zkSync Lite and zkSync Era segments. The latter’s Mainnet went up on February 16th. And its purpose is to provide all Ethereum functionality by allowing for quicker transactions and lower costs.

zkSync warned that linking the zkSync Era to the Ethereum Virtual Machine (EVM) would get Gemholic in hot water. It said that zkEVM was still complicated, but the Era portion was not. “zkSync Era is not EVM equivalent,” the official handle tweeted. This was a purposeful design decision. Era employs divergent, dynamic gas metering, allowing some transaction types to be 10x to 1000x cheaper than on any other EVM rollup.”

The project also stated that Gemholic’s actions resulted in a rise in gas prices, which was not intended. Meanwhile, it acknowledged finding a method that decreased the original gas cost and fully recovered the monies.

However, this is the second setback that the project has encountered in less than a week. There was an issue with full-block creation a few days ago. However, the zkSync Total Value Locked (TVL) remained elevated.

The TVL represents the number of smart contract deposits locked in a protocol. DeFi Llama said the zkSync Era TVL was 66.1 million, up 12.80% in the past 24 hours. This growth means that a significant quantity of liquidity has entered the zkSync ecosystem.

The motivation might be related to the anticipation of a native ZK coin and possibly awards for early players. When Arbitrum [ARB] deployed their AirDrop, something similar happened.

Nonetheless, zkSync has not verified the existence of a prize distribution program. However, suspicion about it has persisted since people assume Ethereum’s first zkEVM will follow suit. Furthermore, zkSync stated that an update on the Gemholic issue would be provided on March 8th.


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