Zama (ZAMA)

Tokenomics & Utility

Role of the token

ZAMA is the protocol’s utility token. It is spent to pay for three main services: verifying ZK proofs of encrypted inputs, decrypting selected values, and bridging encrypted states across chains. Fees are denominated in USD for predictability and are settled in ZAMA on-chain via an oracle. The economic model uses “burn and mint”: 100% of protocol fees paid in ZAMA are burned, while newly minted ZAMA funds operator rewards. (docs.zama.org)

Staking and rewards

Operators must stake ZAMA and may accept delegated stake from token holders. Rewards are minted according to an initial inflation rate (stated as 5% at launch and subject to governance), with distribution across KMS and coprocessor roles. The staking portal is live and supports delegation with operator commissions capped by contract. (docs.zama.org)

Supply and distribution

The project describes a maximum supply on the order of 11 billion tokens, with distribution across team, investors, foundation/treasury, public sale, ecosystem growth, liquidity, and campaign pools. A breakdown independently compiled and labeled as “verified by the Zama team” attributes the allocation as follows: Team 20%, VCs 20%, Treasury 20%, Public Sale 12%, Angels 10%, Growth 10%, TGE Campaigns 6%, Liquidity 2%. The public sales collectively targeted 12% of supply, split across an OG‑NFT community tranche, the main sealed‑bid Dutch auction, and a capped post‑auction sale at the clearing price. (app.tokenomics.com)

Governance

Protocol changes (such as fee updates or adding new host chains) are adopted by a majority of operators. Emergency actions like pausing or blacklisting sanctioned addresses are available rapidly, but unpausing requires multiple coprocessors, balancing safety and decentralization. Operator-level governance is visible on-chain via an Aragon DAO. (docs.zama.org)