As a researcher with a background in blockchain technology and decentralized finance, I find the announcement of Zeta Markets’ Token Generation Event for its native token ZEX and the subsequent airdrop extremely intriguing. The innovative vote-escrow model introduced by Zeta Markets on Solana is an expansion upon the concept pioneered by Curve on Ethereum, offering significant improvements in governance and incentives for long-term stakers.
Zeta Markets, a decentralized exchange operating on the Solana platform, recently made an announcement regarding the launch of its native token, ZEX. They have planned a Token Generation Event to facilitate this process.
At this occasion, the ZEX token distribution begins, serving to recognize dedicated users and stimulate sustained engagement with the protocol.
ZEX plays a vital role in Zeta Markets, contributing to governance, staking, and rewards. This token brings a new vote-escrow mechanism to the Solana platform, enhancing the governance and incentives for dedicated long-term stakers.
In a conversation with crypto.news, Tristan Frizza, the brainchild behind Zeta Markets, shared his insights. He elaborated that the vote-escrow mechanism, which is Zeta Markets’ unique offering, builds upon the trailblazing idea initiated by Curve on Ethereum. This intriguing development introduces not one but two innovative concepts.
As an analyst, I would explain it this way: “I. Stakers earn increasingly larger rewards based on the length of their commitment, encouraging a higher concentration of power among long-term investors. II. Additionally, we offer stakers the flexibility to release their tokens gradually, ensuring a smoother flow of assets and mitigating potential supply disruptions due to sudden token unlocks.”
As a researcher studying the details of this airdrop event, I can explain that a total of 10% of the ZEX supply is allocated for distribution through an airdrop. Of this amount, 8% is earmarked specifically for Zeta traders. Additionally, early stakers have the opportunity to qualify for a secondary airdrop. The distribution of these tokens is determined by both the length of their staking duration and the quantity of ZEX they have locked up.
Starting today, eligible users have 90 days to claim their airdrop allocations.
Airdrop distribution
As a dedicated crypto investor, I’d describe it this way: I appreciate the thoughtful approach of this airdrop program. It rewards active and committed users like myself, whose consistent trading efforts on the Zeta platform are reflected in our individual Z-Scores.
Frizza stated, “In our first airdrop, we’ll give out 80 million dollars’ worth of $ZEX to around 80,000 users (representing 8% of the total supply). Our aim is to put $ZEX into the possession of dedicated traders who are deeply invested in and actively support our protocol’s expansion.”
During the distribution procedure, we implemented various protective measures. For instance, there were minimum Z-Score thresholds, maximum token assignments, a linear allocation method, incentives for initial backers, and mechanisms to identify and prevent Sybil attacks.
Frizza stated, “We set a limit for whale allocations and performed Sybil analysis to guarantee a balanced distribution among the 80,000 eligible wallets.”
On Zeta X, the native token ZEX plays a dual role: it functions as both the gas token and incentive mechanism within the upcoming Solana-based DeFi platform, Zeta’s Layer 2 project. The goal for Zeta X is to provide CEX-like functionality directly on the blockchain, with a predicted mainnet launch in Q1 2025.
Long-term growth
As an analyst, I would rephrase it as follows: Approximately 30% of the total ZEX supply is set aside for incentives to support continuous trading activity. These rewards are distributed every 28-day epoch. The current Genesis Epoch, extending until July 25, 2024, offers a reward pool of 8 million ZEX tokens for traders, in addition to an enhanced referral program and community grants.
Frizza pointed out, “Approximately 30% of the entire supply will be used to motivate traders in the coming 90 months. This arrangement aligns well with our tokenomics.” Moreover, she explained, “Our vote-escrow mechanism amplifies rewards and heightens control over governance for holders who lock up more tokens for extended periods.”
As a researcher studying the dynamic world of decentralized finance (DeFi), I’m particularly intrigued by Zeta Markets’ ambitious goal to establish itself as the preeminent Decentralized Exchange (DEX) specializing in perpetual contracts. Capitalizing on the growing trend from centralized finance (CeFi) towards DeFi, this platform boasts impressive numbers with over $10 billion in trading volume and 125,000 monthly active users. To accommodate growth and meet increasing demand, Zeta Markets is planning to introduce Zeta X.
Avichal Garg, Managing Partner at Electric Capital, stated, “Zeta pushes the boundaries on Solana by launching a decentralized exchange (DEX) that offers the speed and reliability of centralized exchanges, while ensuring the safety and autonomy of self-custodial decentralized finance.”
Zeta Markets remains committed to fostering long-term expansion and active engagement with its community, raising the bar for decentralized trading platforms.
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2024-06-27 16:39