Overview
The initial supply of ZETA is distributed across the following allocations. The total initial supply of ZETA is 2,100,000,000. After approximately 4 years based on a set curve, the protocol will plan to initiate a target of ~2.5% yearly inflation based on the current circulating supply. ZetaChain also has a governance model that allows for additional monetary policy to promote its goal of long-term sustainability.
Token Information
| Token Name | ZETA |
|---|---|
| Total Supply | 2,100,000,000 |
Token Distribution
| Type | Percentage | Total | Schedule |
|---|---|---|---|
| User Growth Pool | 10.00% | 210,000,000 | 4.5% at launch. 0.2% unlocked per month for 5 months after the first month. Starting 6 months after launch, 1/36 of the remaining tokens will be unlocked monthly for 36 months. |
| Ecosystem Growth Fund | 12.00% | 252,000,000 | 1.5% at launch. Starting 6 months after launch, 1/42 of the remaining tokens unlocked monthly for 42 months. |
| Validator Incentives | 10.00% | 210,000,000 | Distributed through block emissions over 4 years. |
| Liquidity Incentives | 5.50% | 115,500,000 | 3% at launch. 1/48 of remaining unlocked per month beginning at launch. |
| Protocol Treasury | 24.00% | 504,000,000 | 2% at launch. After 12 months, 1/36 of the remaining will be unlocked monthly for 36 months. |
| Core Contributors | 22.50% | 472,500,000 | Starting 6 months after launch, for a period of 6 months, 1/18 will be unlocked per month. After 12 months, 1/36 will be unlocked monthly for 24 months. |
| Purchasers and Advisors | 16.00% | 336,000,000 | Starting 6 months after launch, for a period of 6 months, 1/18 will be unlocked per month. After 12 months, 1/36 will be unlocked monthly for 24 months. |
Holders who have locked ZETA may use the ZETA to stake to validators in order to provide security to the network and validate transactions. Locked ZETA may only be staked, not used for any other purposes. Some third parties may count staked ZETA as part of circulating supply. The amount of locked tokens that are staked is dynamic, and the total live amount of staked tokens can be found by querying the blockchain or viewing a relevant explorer. Different parties may employ different methodologies for calculating or tracking circulating, staked, or total token supply.
User Growth Pool
This portion is allocated towards incentivizing usage and growing the user-base of ZetaChain. This will be distributed through various initiatives which are based on active, meaningful user behaviors. For example, this portion will be used for programs like the ZetaLabs airdrop, wallet campaigns, and other community-focused rewards to raise awareness of ZetaChain utility features and usage thereof.
Ecosystem Growth Fund
This portion is allocated towards partners and developers contributing to the ZetaChain ecosystem. For example, incentives to help dApp developers get started through a grant program or for wallet partners to support ZetaChain natively.
Validator Incentives
A portion of the total initial supply (10%) is allocated to the initial emissions pool on ZetaChain. This pool allows for block rewards targeted to sustain and secure the network over the first 4 years of network growth. After this pools is depleted, the protocol will introduce a planned 2.5% inflation through validator rewards, separate from the emission curve. You can read more about Validator Incentives and distributions here.
Liquidity Incentives
The assets managed by the network’s TSS have an allocation of rewards that incentivize providing liquidity that is usable on ZetaChain's EVM. This portion is allocated towards incentivizing liquidity that is crucial for the protocol and ecosystem to function and maintain stability, in order to facilitate low-slippage and minimal gas-usage transfers of value through and on ZetaChain.
To incentivize liquidity in pools such as the Core ZRC-20 pools, this pool will be used to provide on-chain incentives for them to help bootstrap a seamless transaction experience for users and developers.
Protocol Treasury
The treasury pool is allocated towards ecosystem and community initiatives aimed at improving the ZetaChain ecosystem such as network insurance, bug bounties, protocol development and bounties, and operations.
Core Contributors, Advisors, and Purchasers
ZETA are allocated to Purchasers as well as Core Contributors and Advisors who earned tokens for their contributions to the ZetaChain network.
Token Distribution Log
Oct 23rd, 2024:
To enhance security and decentralization, 1.5B ZETA tokens have been permanently anchored to ZetaChain’s native network. While ZETA can still be transferred back to Ethereum as an ERC-20, the maximum amount that can be moved to Ethereum is now capped at 600M.
This update has no effect on total supply, circulating supply, nor any network participant's ZETA. The total ZETA supply across chains remains 2.1B, with no impact on functionality. Circulating supply schedule for all network participants also remains unchanged.
The ZETA token anchoring improves ZetaChain’s security by ensuring 1.5B ZETA is permanently secured by ZetaChain’s native network, rather than the ERC-20 contract. This is a key step toward decentralization and improved safety for users and developers.
Additionally, this move prepares ZetaChain for upcoming chain integrations, laying a more secure foundation for Universal Apps that can span any blockchain from Ethereum to Bitcoin and more.
View the token transfer transaction to the null address on the Ethereum Connector: https://etherscan.io/tx/0x772a9afed8af83d3e51b5d3c8fceced29e955483c47c55e0a996402022acf89d (opens in a new tab)
The above details are the current thinking and models with regard to ZetaChain and ZETA. They are subject to variations for the ZetaChain mainnet and further developments thereafter.