Coin World reported:
Compilation: Baishui; Data source: Zeta Foundation,
Solana DeFi derivatives platform Zeta Markets announced that the ZEX airdrop claim will start at 18:00 on June 27, 2024 and will end at 17:45 on September 25, 2024 (90 days after TGE). Any unclaimed tokens will be returned to the community through incentive measures and activities. Organize detailed information about ZEX airdrops for readers to enjoy.
I. Introduction to ZEX
ZEX is the native token of the derivatives protocol Zeta Markets on Solana. The staking mechanism will allow users to stake ZEX, unlock governance rights, and additional incentive measures. The token economics and utility of ZEX are strategically designed to align the interests of multiple stakeholders with the overall goals of the protocol. This alignment not only empowers the ZEX community but also incentivizes active community participation in guiding the direction of the protocol.
II. ZEX Token Economics
Total token supply: 1,000,000,000
ZEX Token Distribution
The majority of the ZEX token supply (62.5%) is reserved for the community:
10% will be distributed through airdrops.
30% will be used for platform incentives, specifically provided to traders.
22.5% will be allocated to the community treasury to support multi-year growth plans, including the Zeta Creator and Ambassador program.
The remaining 37.5% of the $ZEX token supply is reserved for contributors and investors, and follows a multi-year unlock and vesting schedule.
III. Release Schedule
TGE Release Schedule
The following unlocks will occur during TGE and the subsequent weeks:
Airdrop: The ZEX airdrop will be distributed in 2 rounds. 8% of the supply will be airdropped to TGE traders based on Z-Score. After launch, initial ZEX stakers will be eligible for an additional airdrop (2% of the supply) in the form of staked ZEX.
Incentives: Following the airdrop snapshot, platform incentives for traders (30% over 90 months) will begin from Epoch 1. Refer to the incentives for complete details.
Treasury: Concurrently, community treasury (22.5% unlocked over 24 months) will support multi-year growth plans, including liquidity provision and the Zeta creator and ambassador program.
Long-term Release Schedule
Core protocol contributors and investors will have longer lock-up periods.
Investors: Subject to a 1-year cliff and 2-year vesting period.
Contributors: Subject to a 1-year cliff and 3-year vesting period.
This structure ensures that both contributors and investors are aligned with the long-term success of Zeta.
IV. Airdrop Mechanism
10% of the total ZEX token supply will be strategically allocated through airdrops to establish a broad base of stakeholders and foster a healthy governance ecosystem. This will be achieved by rewarding past participation of Zeta users while encouraging long-term commitment by reserving additional allocations for ZEX stakers.
The airdrop will occur in two rounds.
Round 1 – Early users and the Solana ecosystem (8% of the total supply)
At launch, 8% of the total ZEX supply will be distributed to early users to recognize their contributions to the platform:
7% of the distribution will be specifically provided to traders based on Z-Score; this distribution does not include market makers.
1% of the distribution will be given as a bonus to traders belonging to key community partners within the Solana ecosystem.
This means that no one will receive ZEX without active trading on Zeta.
Recognizing the critical role of our earliest supporters in the success of Zeta, OG (pre-season 1) and season 1 traders will receive loyalty boosting rewards, with OG benefiting from larger boosts.
Round 2 – ZEX stakers (2% of the total supply)
After the token generation event, ZEX token holders will have the opportunity to stake their tokens for a flexible duration to earn gZEX as a reward (see the staking section below for more details).
In addition to staking rewards, early stakers will also be eligible for a second airdrop equivalent to 2% of the total ZEX supply, distributed proportionally based on their share in gZEX. The airdrop will be issued in the form of staked ZEX, released one period (28 days) after TGE.
This approach aims to reward and incentivize community members who are committed to the project in the long term and dedicated to helping guide the protocol and its development.
Note: The second airdrop may involve locking mechanisms. More details will be announced in the coming weeks.
V. Token Utility
Staking: Staking will become a key feature of the token since launch. Users will be able to stake ZEX for up to 4 years to unlock governance rights and additional incentive measures.
Governance: ZEX governs the Zeta protocol, allowing stakeholders to vote on the token economy on Solana. Over time, it will empower community members to propose, discuss, and vote on the future development of the protocol.
Incentives: A significant portion of the ZEX token supply is reserved as a reward mechanism for traders to incentivize liquidity and trading activity.
VI. Staking
Governance
Zeta’s governance framework is built on the innovative voting delegation model pioneered by Curve on Ethereum, introducing 2 new concepts. Firstly, stakers will receive exponentially increasing rewards during the lock-up period – thus, more power will be allocated to those who stake for longer. Secondly, we introduce the ability for equity holders to gradually vest and unlock their tokens – providing users with more liquidity and limiting the supply shock to the ecosystem from large-scale unlocks.
To achieve this, our token economics will have two components:
ZEX: Transferable SPL tokens (Solana Program Library, i.e. Solana’s equivalent of ERC-20 tokens), distributed to users through airdrops and incentive mechanisms for protocol usage.
gZEX: The staked version of ZEX, non-transferable. gZEX represents the user’s long-term commitment, thus providing corresponding governance rights and enhanced incentive measures.
Calculating ZEX
Users will be able to stake ZEX for a designated period (up to 4 years) to receive gZEX. The amount of gZEX received for staking ZEX will be determined by the locked ZEX token amount and staking period, according to the following formula:
gZEX Lockup
Managing gZEX
gZEX has two different states – locked and vested – allowing users to manage the lifecycle of governance tokens and their benefits:
Locked state: Your gZEX balance and associated rights remain unchanged in this state.
Vested state: Your gZEX gradually unlocks, converting into withdrawable liquid $ZEX.
Boosting
Boosting is another significant benefit of staking ZEX. By holding gZEX, traders will be able to earn additional incentives, amplifying their rewards based on their gZEX balance. The goal of boosting is to allocate larger incentives to traders who also demonstrate a long-term commitment to the protocol through staking and governance participation.
The share of users in these additional rewards will be determined based on their boosting score, calculated as follows:
Where the above score refers to the user’s score across the entire incentive program – e.g. their Z score.
VII. Incentive Measures
The platform incentive program will commence immediately after the airdrop snapshot and will serve two key objectives. Firstly, it will be a mechanism to gradually distribute token supply and governance rights to users. Secondly, it will play a critical role in growth strategy, incentivizing traders and market makers to achieve optimal trading conditions on the exchange.
This approach rewards those directly enhancing protocol liquidity and activity, and ensures alignment between token holders and the success of the protocol.
The proposed incentive allocation is 30% of the total ZEX supply, with a designed decreasing emission rate. The purpose of this gradually decreasing emission is to maintain consistency with the transition of the protocol towards self-sustainability and broader supply distribution.
Trader Incentives
Traders will be rewarded proportionally based on their Z score achieved in each period. The Z-Score program will operate in a similar manner to seasons 1 and 2, but the Z-Score will no longer accumulate across seasons. Instead, the Z score will be reset at the beginning of each new phase.
ZEX tokens allocated to users at the end of each epoch will be calculated based on their individual Z score relative to the total Z score achieved by all participants of the epoch. The primary driver of the Z-Score is trading activity. Additionally, gZEX holders will also benefit from additional incentives in the form of Boosting.
Market Maker Incentives
For each epoch, professional market makers will be rewarded for their role in creating optimal trading conditions on the exchange. The market maker program aims to incentivize various liquidity metrics, enhancing the trading experience for users. For more details, please refer to: Maker Incentives Program.
