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Tokenomics
The Zenith network employs multiple tokens across different stages of its evolution, each serving specific purposes in the network's transition from testnet to fully sovereign blockchain.
Token Overview
The Zenith ecosystem uses four distinct tokens across three network stages:
| Token | Stage | Purpose | Transferable | Value |
|---|---|---|---|---|
| znt | Stage 0 | Onboarding operations | ✅ | None |
| stakez | Stage 1 | Validator mechanics, chain operations | ❌ | None |
| $Z | Stage 1 onward | Native currency, fees, governance | ✅ | Yes |
| ZSN | Stage 2 onward | Staking/bundling rights NFT | ✅ | Yes |
Zenith Onboarding Token (znt)
The znt token is exclusively used during Stage 0 (the 6-month testnet phase) to enable users to make transactions on the Stage 0 zenithd testnet. It has no dollar value and functions purely as a utility token. Tokens are distributed on demand via faucet in the onboarding application and are freely transferable within Stage 0. The znt token pays for gas fees during transactions on the testnet, allows participants to submit attestations on-chain to prove ownership, and enables participants to verify testnet functionality before mainnet launch.
!!! note "Testnet Only" znt tokens have no monetary value and cannot be exchanged for other tokens. They are delivered via faucet in the onboarding app and exist solely to enable Stage 0 testnet transactions.
Zenith Staking Token (stakez)
The stakez token enables validator mechanics and chain operations during Stage 1 (the initial mainnet phase). It can only be acquired through lockdrop participation, is non-transferable and cannot be traded, and has no monetary value. stakez is required for validator operations and consensus participation, allows participants to submit claim transactions for accrued $Z tokens, and facilitates interactions with chain modules during Stage 1. The stakez token is minted at Stage 1 genesis based on lockdrop participation and is retired and migrated to ZSN tokens in Stage 2.
Zenith Token ($Z)
Overview
The $Z token is the primary value token of the Zenith network, serving as the native currency, fee token, and governance token.
Token Generation and Supply
The full supply of $Z is created at the Token Generation Event (TGE) during Stage 1 genesis. Initially, 100% of the supply is locked in the lockdrop module and allocated across participant categories including lockdrop participants, team, foundation, and market makers. Every token is accounted for before network launch, ensuring complete transparency.
Accrual Mechanisms
Different participant categories earn $Z through different mechanisms:
Galaxies (Validators)
Galaxy validators earn $Z through active block production and signing. Accrual is earned through successful validation and serves as an incentive for maintaining network security. Jailing and slashing serve as penalties for poor performance or rule violations—jailing removes validators from the active set and stops new token accrual, while slashing causes loss of existing tokens.
Stars (Bundlers)
Stars earn $Z by bundling transactions from planets and submitting them to galaxy validators. Accrual is earned through active transaction bundling, maintaining their sponsor relationship by submitting bundles to their sponsoring galaxy. They earn rewards for providing bundling services to the network.
Market Makers
Market makers receive 100% of their allocation unlocked immediately at Stage 1 start. Their purpose is to provide initial liquidity for $Z trading, enabling participants to acquire $Z for fees. They must still claim their allocation from the lockdrop module.
Team
Team members receive $Z through linear vesting over time with programmable vesting schedules. They can claim their accrued amounts multiple times as tokens vest.
Foundation
The foundation can claim 50% of the market maker allocation for ecosystem development and governance purposes. For example, if market makers receive 10 $Z, the foundation can claim 5 $Z. These funds support protocol development and community initiatives.
Claiming Process
- Accrual: Tokens accrue in lockdrop module based on role/activity
- Claiming: Participants submit claim transactions anytime
- Transfer: Claimed tokens move to user's Zenith account
- Unlocked: Once in user account, tokens are fully transferable
Transaction Fees
The $Z token is the exclusive currency for transaction fees on Zenith, creating a unified economic model that simplifies network economics. All fees benefit $Z holders and validators through value accrual. Users can acquire $Z from market makers to pay for transaction fees.
Governance Rights
$Z provides governance participation through several mechanisms. Token holders can vote on proposals with voting power weighted by their token holdings, participate in network configuration updates through parameter changes, approve new features and modules through protocol upgrades, and allocate development funds through treasury decisions.
Unclaimed Token Handling
Tokens from jailed and slashed validators and inactive participants remain in the lockdrop module until the situation is resolved. These cases are handled through hardforks or protocol governance, with all decisions made transparently through community governance processes.
Zenith Staking NFTs (ZSN)
ZSN tokens represent the evolution from stakez to a Proof-of-Authority (PoA) system that interoperates with Urbit's sponsorship model. ZSN represents a migration from DPoS to Proof-of-Authority with economic consequences, adding economic weight to Urbit's sponsorship relationships, where staking permissions become tradable NFT assets with prices denominated in $Z. ZSN operates from Stage 2 onward as non-fungible tokens that encode validation or bundling permissions, with each NFT backed by a portion of a galaxy's locked $Z assets and fully transferable and tradable. ZSN distribution is based on the final stakez state from Stage 1, with galaxy owners receiving ZSN encoding validator rights and star owners receiving ZSN encoding bundling rights. Each stakez position maps 1:1 to a corresponding ZSN, preserving all existing rights in NFT form. ZSN enables Zenith to become fully sovereign by eliminating reliance on Ethereum or Azimuth, with rights held as tradable community assets carrying perpetual staking permissions and creating market-driven validator selection through economic incentives.
Stage Evolution Summary
The token system evolves across network stages as described in Network Stages. Each stage uses different tokens to support the network's progression from testnet to full sovereignty.