TreasureDAO Joins Elastic Chain: Fireside Chat Announced

A major security incident has resulted in the loss of $290 million, highlighting fundamental vulnerabilities in operator-attested infrastructure systems. **Key Points:** - The protocol functioned as designed—no bugs were found - Loss occurred due to reliance on operator attestation rather than cryptographic verification - Incident demonstrates why institutional adoption requires cryptographic enforcement **The Core Issue:** Operator-attested systems depend on trusted parties to verify transactions. When operators fail or act maliciously, funds can be lost even when the underlying protocol works correctly. **The Solution:** Cryptographic enforcement provides mathematical guarantees independent of operator behavior. This approach offers: - Trustless verification - Protocol-level security - Reduced reliance on human actors This incident serves as a stark reminder that institutional-grade security requires moving beyond trust-based systems to cryptographically verifiable infrastructure.

ZKsync has proposed **ZIP-16**, a major protocol upgrade to version 31, now available for community discussion on the governance forum. **Key features of the v31 upgrade include:** - **ZKsync Connect** - Native interoperability between ZKsync chains, enabling seamless cross-chain communication - **Stage 1 support** for Layer 1-settling chains, advancing decentralization goals - **Expanded ZKsync OS compatibility** for broader ecosystem integration The proposal represents a significant step toward creating an interconnected network of ZKsync chains with native bridging capabilities. [Read the full ZIP-16 proposal](https://forum.zknation.io/t/zip-16-v31-interop-bundles-upgrade/979)

ZKsync has submitted ZIP-16 to its governance forum, proposing the v31 protocol upgrade. The upgrade introduces several technical improvements: - **ZKsync Connect**: Enables native interoperability between different ZKsync chains - **Stage 1 Support**: Adds compatibility for chains that settle on Ethereum L1 - **Expanded OS Compatibility**: Broadens the range of systems that can run ZKsync OS The proposal is now open for community discussion and voting through the governance process.

**$ZK has been listed on the Blockworks Token Transparency Framework**, a standardized platform designed to provide essential token information to the market. - The framework aims to replace speculation with verified, on-record material information about tokens - Provides a standardized set of essential data points for investors and users - Brings necessary transparency to the cryptocurrency market The listing means $ZK token holders and potential investors can now access comprehensive, verified information through the framework rather than relying on incomplete or unverified sources.

The $ZK staking pilot program has reached **330 million tokens staked**, maintaining a **10% APR** target rate. The program uses a **Delegate-to-Stake mechanism**, where rewards are only available to users who actively delegate their tokens. This design aims to strengthen governance participation. **Key Points:** - Total staked: 330M $ZK tokens - Current APR: 10.0% - Rewards require active delegation - Increased delegation improves governance resilience for proposals, upgrades, and emergency responses The staking amount has grown from 320M tokens earlier in the week, showing steady adoption of the pilot program.