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Token Economy
Bi Token Model: $ZKM and $veZKM
zkMakers has a governance model supported by the veZKM token that allows holders to directly influence the protocol and secure the network or verifiers. The model allows zkMakers to stay decentralized and grant management of the protocol to people who are invested in it.
zkMakers uses two tokens to manage its utility and governance:
$ZKM— ERC-20 utility token of the protocol. Is used for rewarding liquidity and volume providers, as well as Oracle Verifiers through epoch ZKM emissions.$veZKM— ERC-721 governance token in the form of an NFT (non-fungible token). veZKM is used for governance and for accessing the staking mekanism and becoming a Verifier or Verifier auditor.
The only way to get veZKM is through the lock smart contract (also known as vote-escrowed period) can be up to 4 years, following the a 1:1 relationship (if you lock 1 ZKM you will be minting 1 veZKM). The longer you lock your ZKM the more APY you will receive. They APY will be only provided during the first 4 years to influence the rapid decentralization of the protocol.
The options to lock your ZKM are: 3 months, 6 months, 12 months, 24 months, 48 months.
- If you Lock 3 months your ZKM to get veZKM you will receive 1% APY in ZKM (Yield available only during the first 4 years from TGE).
- If you Lock 6 months your ZKM to get veZKM you will receive 2% APY in ZKM (Yield available only during the first 4 years from TGE).
- If you Lock 12 months your ZKM to get veZKM you will receive 4% APY in ZKM (Yield available only during the first 4 years from TGE).
- If you Lock 24 months your ZKM to get veZKM you will receive 8% APY in ZKM (Yield available only during the first 4 years from TGE).
- If you Lock 48 months your ZKM to get veZKM you will receive 16% APY in ZKM (Yield available only during the first 4 years from TGE).
The main functionalities of $ZKM are
- Add yield to the long term $ZKM locked (only offered during the 4 initial years).
- Subsidizing or providing extra yield to the network of Verifiers and its Auditors (available for the first 20 years of the protocol from TGE).
- Boost or provide extra rewards to the open Reward Pools more voted (available for the first 20 years of the protocol from TGE).
- Lock $ZKM and get $veZKM.
Lock your ZKM 3, 6, 12, 24 or 48 months and get veZKM
The governance framework enables veZKM holders to allocate the weekly ZKM rewards among the different pools through gauges. This feature allows token holders with more significant stakes to decide where the ZKM rewards will be distributed, ensuring that the community's priorities are aligned with the protocol's growth and development.
- 1.Vote in one Reward pool to boost its visibility
- 2.Delegate your veZKM to Gauge Delegator SC
If you vote in the different gauges, you will be elegible to receive:
- Up to 5% of the total Reward Pool (i.e. BNB, DAI)
- Up to 5% ZKM of weekly reward pools boosts(1) (or 839.9 ZKM)(*)
(*)Total Boosts on Gauges 17.5M over 20 years / 1043 weeks 16.778 ZKM per Epoch (Weekly)
Lock your ZKM 3, 6, 12, 24 or 48 months and get veZKM
Through DAO governance, veZKM token holders can propose and vote on changes to the protocol, such as changes to the rewards system or modifications to the governance structure or new exchange integrations.
More precisely you would be able to decide:
- 1.New exchange integrations
- 2.Fee model change
- 3.Vote verifiers
- 4.Vote verifiers Auditors
If you vote in different DAO proposals you will be able to receive:
- Up to 2% of the protocol feesrewards converted to ZKM (i.e. DAI -> ZKM)
Verifications from provers will be assigned randomly to validators with more veZKM staked
You will need to Lock your ZKM 3, 6, 12, 24 or 48 months; make sure that you receive at least 2.5M veZKM (you will need 10M veZKM to become a Verifier Auditor
After locking your ZKM and recievining 2.5M veZKM you will be able to stake them to the Staking smart contract.
You can Stake 10M veZKM minimum requirement to become an validator auditor and they must be approved by the DAO
If you become a protocol verifier you will be entitled to earn proportionally:
- Up to 8% of token rewards converted to ZKM (i.e. DAI -> ZKM)
- Up to 8% of the Total Subsidies for Validators(*)
(*) Total Subsidies for Validators 17.5M over 20 years / 1043 weeks = 16.778 ZKM per Epoch (Weekly)
- Total Token supply: 500,000,000.00
- $ZKM - ERC-20 utility token of the protocol
- $veZKM - ERC-721 governance token in the form of an NFT (non-fungible token)
Token Allocation | % of allocation | Number of Tokens | Vesting Period | TGE Release |
|---|---|---|---|---|
Team & Recruitment | 10.00% | 50,000,000 | 12 month lockup, then daily linear 24 months | 0.00% |
Advisory | 3.00% | 15,000,000 | 6 month lockup, then daily linear 18 months | 0.00% |
Ecosystem Development | 9.00% | 45,000,000 | 1 month lockup then daily linear for 12 months | 0.00% |
Treasury Reserve | 10.00% | 50,000,000 | 3 month lockup, then daily linear for 48 months | 0.00% |
Ecosystem Rewards | 20.00% | 100,000,000 | 1 month lockup, then daily linear for 120 months | 0.00% |
Marketing & Partnerships | 12.00% | 60,000,000 | 7 day lockup, then daily linear for 24 months | 0.00% |
Launch Liquidity | 5.00% | 25,000,000 | Unlocked as per market demand | * |
Seed | 6.00% | 30,000,000 | 5% at TGE, 1 month cliff then daily linear unlock over 8 months | 5.00% |
Private Round | 10.00% | 50,000,000 | 7.5% TGE, 1 month cliff the daily linear over 6 months | 7.50% |
Public Round | 15.00% | 75,000,000 | 10% TGE, 1 month cliff then daily linear over 4 months | 10.00% |
Total | 100.00% | 500,000,000 |