zkSync Parent Firm Axes 16% Of Workforce, Will Other Ethereum Layer 2 Follow?

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As a researcher, I find myself grappling with the news that Matter Labs, the company behind Ethereum Layer-2 protocol zkSync, has decided to restructure its organization, leading to a staff reduction affecting approximately 16% of its team. It’s not every day I face such a tough call, having been part of their operations for six long years.

Matter Labs, the entity responsible for zkSync, Ethereum‘s Layer-2 protocol, has declared their intention to reorganize. Unfortunately, this change includes a reduction in staffing levels, impacting approximately 16% of Matter Labs’ workforce. As stated by Alex Gluchowski, CEO of the company, this move is one of the toughest decisions the organization has had to make during its six-year tenure.

Matter Labs to Meet Developers’ New Demand

In his X post, Gluchowski further explained that Matter Labs had to make this move to adapt to “the different type of technology and support” that developers building on zkSync now require.

He claimed that the operations of these developers have evolved over the years, demanding a different type of technology and support. This is in addition to the increased demand for zk chains.

In natural and easy to read language:

The recent update indicates that Matter Labs might be catering to its developers and the wider network, rather than focusing on the Chinese community. This unfolds just three months after it faced criticism from its Chinese user base. The criticism emerged due to dissatisfaction with certain management choices.

In that period, the community highlighted their consistent dedication to upholding transparency and maintaining accountability towards their donors and members.

Beyond zkSync, New Pivot for Layer-2 Protocols

In natural and easy to read language, the current situation involves a silent competition between Layer 2 (L2) protocols, as they all strive to outperform each other. These protocols are continually implementing updates to remain relevant in the ecosystem. Therefore, it is not surprising that Matter Labs have reshuffled its employees. The real question now remains whether other competing L2 chains will lay off staffs as well.

Last month, Shiba Inu introduced a new system within their Layer-2 scaling solution called Shibarium, which they named ShibTorch. Essentially, this tool is designed to burn off base fees paid by users while managing inflation. This approach allows them to decrease the supply and increase its value, as well as encouraging loyalty among holders through incentivization.

I am excited to announce that Sony has teamed up with Starbase to introduce the new Ethereum L2 Sonneium on Optimism. This project is backed by Astar Network, Alchemy, Chainlink, Circle, Optimism, and The Graph. As a researcher involved in this project, I am thrilled about the progress we are making together.

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2024-09-03 19:24