In a move that signals a maturing ecosystem, Matter Labs has announced the planned retirement of ZKsync Lite, the pioneering zero-knowledge rollup that first launched on Ethereum in 2020. Slated for deprecation in 2026, this “orderly sunset” marks the end of a groundbreaking proof-of-concept and a strategic consolidation of efforts toward its more advanced successor, ZKsync Era.
The End of a Pioneering Era
ZKsync Lite, originally known as ZKsync 1.0, holds a historic place as Ethereum’s first functional ZK-rollup. It served as a vital testbed, validating the core technology of bundling transactions off-chain and submitting cryptographic validity proofs to the Ethereum mainnet. This innovation provided early scaling relief, enabling fast and low-cost token transfers and NFT minting.
However, the network’s activity has dwindled to fewer than 200 daily operations, a clear sign that users and developers have moved on. The shift began in earnest after Matter Labs stopped active development on Lite in early 2023 to focus entirely on ZKsync Era, a fully EVM-compatible zkEVM that supports general-purpose smart contracts. With the ecosystem’s liquidity, tools, and major applications like wallets and decentralized apps now consolidated on Era, maintaining the legacy Lite network is no longer efficient.
A Straightforward Path for Users
For the estimated $49 to $50 million in user funds still bridged to ZKsync Lite, the process is designed to be secure and straightforward. The team has confirmed that no immediate action is required and that withdrawals directly to Ethereum’s Layer 1 will remain fully functional throughout the entire deprecation process. The ZKsync Association has committed to publishing a detailed migration timeline, specific dates, and clear instructions in the coming year to guide users and developers through the transition. The key message for asset holders is to prepare to migrate funds well before the 2026 shutdown to avoid any last-minute congestion.
Strategic Focus on an Institutional Future
The retirement of ZKsync Lite is not a step back but a deliberate pivot forward. The focus is now squarely on ZKsync Era and the broader ZK Stack, which are being engineered for institutional-grade decentralized finance (DeFi) and real-world asset (RWA) tokenization. Recent upgrades like “Atlas” have introduced native cross-chain interoperability, positioning ZKsync as a network of interconnected ZK chains rather than a single Layer 2.
This vision is gaining significant traction. The ecosystem has attracted major institutional interest, with Deutsche Bank developing an Ethereum L2 using ZKsync technology and UBS testing the platform for tokenized gold investments. Furthermore, the network has captured a notable share of the RWA tokenization market, hosting billions in tokenized private credit. As Ethereum co-founder Vitalik Buterin has noted, ZKsync’s roadmap is an “underrated and valuable” pillar in Ethereum’s long-term scaling strategy.
In summary, the sunset of ZKsync Lite is a natural evolution in the fast-paced world of blockchain scaling. It represents the retirement of a successful prototype that fulfilled its mission, making way for a more robust, capable, and institution-ready infrastructure. For the broader Ethereum community, it is a sign of healthy progress, demonstrating that the ecosystem is capable of innovating, consolidating, and building toward a more scalable future.
