2024-04-10
Zeta Markets, a decentralized exchange built on the Solana blockchain, is preparing to launch its governance token, Z. This token will have a total supply of 1 billion, with 10% (100 million) being distributed through an airdrop.
Zeta plans to allocate half of the airdrop to active traders and community members based on their Z-Score, a points system on the platform. Another 1% will be given to users who are part of strategic communities in Solana, and the remaining 4% will be rewarded to Z token stakers.
According to Zeta founder Tristan Frizza, the Z token is expected to go live in May, and the airdrop claims will commence at the same time. Frizza mentioned that the snapshot for the airdrop will be announced in the coming weeks. Zeta is currently evaluating listing offers from top exchanges and conducting due diligence.
Zeta plans to introduce the vote escrow model on Solana through the Z token, similar to what Curve pioneered on Ethereum. This model allows token holders to lock up their tokens for a specified period to gain voting power. The longer the tokens are locked, the more voting power they accumulate. Frizza explained that token stakers will receive greater voting power and rewards for staking for longer durations.
After the token launch, 30% of the total supply of Z will be used to incentivize maker and taker traders. Venture capital investors in Zeta own approximately 17.5% of the total token supply, with a vesting period of 3 years following the launch.
Since its establishment in 2021, Zeta has gained support from prominent venture investors such as Electric Capital, Jump Capital, Wintermute, and Solana Ventures.
In addition to the token launch, Zeta plans to release a Solana Layer 2 rollup this year.
This rollup aims to build the first decentralized finance (DeFi) Layer 2 solution on Solana, utilizing Solana as the settlement and data availability layer. The goal is to achieve faster settlement times and lower costs compared to Ethereum rollups.
Frizza emphasized that this will enable Zeta to create a high-performance exchange similar to centralized exchanges while addressing congestion issues on Solana Layer 1.
More details about Zeta's Layer 2 rollup will be disclosed in the upcoming whitepaper.
