- The Zama blockchain is launching a public sale auction for its ZAMA token.
- The event will begin on January 12 on the Ethereum blockchain.
- 10% of the token will be auctioned off via a sealed-bid Dutch auction.
Zama, an innovative open-source cryptography blockchain, is gearing up for a landmark event- a public sale auction for its native ZAMA token. Scheduled to unfold on the Ethereum blockchain from January 12 to 15, this strategic move promises to democratize access to the project’s strategic cryptographic solutions. By distributing 10% of the token’s total supply directly to the public, Zama is fostering broad-based community ownership and encouraging a fair price.
As with any token sale, investors and traders are considering the risks and benefits associated with the ZAMA tokens. Experts warn about a possible price correction and market volatility as usual amid token unlocks.
ZAMA Token Sale Unveiled
In a recent X post, Zama, a pioneer blockchain platform, has announced the launch of a public sale for its ZAMA token. Starting January 12, 10% of the token supply will be auctioned off via a sealed-bid Dutch auction on the Ethereum blockchain.
This innovative approach leverages Fully Homomorphic Encryption (FHE) to ensure bud confidentiality, prevent market manipulation, and facilitate immediate token unlocking.
The token distribution is slated for January 20. The mainnet is expected to go live by the end of the year. As the utility token for the Zama protocol, ZAMA will enable users to pay fees, participate in node staking and delegation, and contribute to the security of FHE nodes.
The token distribution is slated for January 20. The mainnet is expected to go live by the end of the year, with the crypto fully functional before the auction. As the utility token for the Zama protocol, ZAMA will enable users to pay fees, participate in node staking and delegation and contribute to the security of FHE nodes. The team has also invited interested participants to register for the auction.
What is Zama Blockchain?
Interestingly, Zama is reportedly the world’s first FHE unicorn with a valuation exceeding $1 billion and $150 million in funding. As a pioneer in fully homomorphic encryption, Zama is revolutionizing blockchain applications with its cutting-edge technology.
The blockchain’s FHE virtual machine is a groundbreaking innovation that enables smart contracts to execute on encrypted data while preserving their full composability with existing DeFi protocols, thereby ensuring unparalleled privacy.
The Zama blockchain’s technology is poised to transform various industries through its real-world applications, including confidential DeFi, private payments, sealed-bid auctions, identity verification, and enterprise solutions for healthcare and defence.
With an aggressive scaling roadmap, Zama plans to achieve more than 10,000 transactions per second utilizing dedicated ASIC hardware. Key milestones include the Ethereum mainnet launch in Q4 2025 and Solana integration in 2026.
Why ZAMA Token Stands Unique?
It is noteworthy that the ZAMA token serves multiple key functions within the network. It secures the network through staking, where validators must stake significant amounts of ZAMA tokens to operate coprocessors and Key Management Service (KMS) nodes.
The token is also used for protocol fee payments, with all interactions requiring ZAMA tokens, thereby creating consistent demand proportional to network usage, with fees automatically burned to reduce supply.
Additionally, token holders participate in protocol governance through onchain voting for critical decisions. The token also incentivizes honest behaviour among network operators through staking rewards and slashing penalties.
Market Impact and Speculation
The upcoming ZAMA token sale is expected to have a significant impact on the market, with some investors speculating it could lead to a market correction. If a large number of investors participate in the event, it could trigger a price surge due to an increase in demand. However, it could also lead to a potential debacle as the new tokens are unlocked.
