Chapter 4 Token Utility & Allocation Design
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Category
Vesting Schedule
% of Total Supply
# of Tokens
Seed Investors
6-month cliff, linear vesting over 2.5 years
7.5%
750,000,000
Investors
6-month cliff, linear vesting over 2.5 years
10.0%
1,000,000,000
Advisors
6-month cliff, linear vesting over 2.5 years
2.5%
250,000,000
Exchange Listing & Liquidity Reserve
No cliff, released upon exchange listing
5.0%
500,000,000
Contributors
6-month cliff, linear vesting over 3.5 years
5.0%
500,000,000
Ecosystem (Games & Developer Acquisition)
No cliff, 10% at TGE, linear vesting over 3 years
5.0%
500,000,000
Protocol Development
No cliff, 10% at TGE, linear vesting over 3 years
10.0%
1,000,000,000
Community (Mining Rewards & Initial Airdrop)
No cliff, 10% at TGE, linear vesting over 15 years
55.0%
5,500,000,000
Design Principles
Long-Term Community Incentives 55% of the total token supply is allocated to community rewards—including AI mining rewards and the initial airdrop—with a 15-year linear vesting schedule. This ensures sustainable, long-term alignment between network participants and protocol growth.
Product Development & Ecosystem Expansion 10% of tokens are dedicated to protocol development, with an immediate 10% unlock at TGE and a 3-year linear vesting schedule. This allocation supports continuous R&D, infrastructure optimization, and the launch of core protocol modules.
Contributor & Developer Acquisition Support The Contributor (5%) and Ecosystem (5%) allocations provide targeted incentives for core developers, partner game studios, and ecosystem participants. These funds are structured to accelerate high-quality integrations and long-term collaboration.
Strategic Investment & Liquidity Provisioning A combined 25% of the supply is allocated to Seed Investors (7.5%), Investors (10%), and Exchange Liquidity Reserve (5%), ensuring sufficient early-stage capital, long-term partner alignment, and robust market liquidity from the outset.
Advisory Alignment 2.5% of tokens are reserved for strategic advisors who contribute to governance, technical direction, and global network expansion.
As the core value carrier of the entire ecosystem, the Zypher token not only serves as mining rewards and basic transaction media but also deeply integrates with AI Agent verification services, community governance, and cross-platform collaborations, thus playing multiple indispensable roles in Zypher Network.
Mining Rewards Under PoZK consensus, Zypher tokens are allocated to miners who successfully complete zero-knowledge proof (ZKP) workloads. By contributing computational power, generating, and submitting proofs, miners earn token income that forms a positive loop between network security and token value. As AI Agent demand grows within the network, the required number of proofs also increases, stimulating token issuance and usage. For more details, see [Chapter 5: Proof of ZK Work (PoZK) Consensus Mechanism].
Staking & Liquidity Pools
Staking: Users can stake their tokens for mining returns or governance rights. Stakers not only strengthen the network’s security layer but can also earn staking income or enjoy premium AI Agent services.
Ecosystem Growth As more AI Agent, DeFi, GameFi, and traditional industry applications connect to Zypher Network, the token’s usage scenarios multiply. For instance:
AI Agent Calls: Project teams or developers pay tokens for trustworthy AI services, deploying circuits or verification processes.
DApp Ecosystem: DeFi, NFT, gaming, etc., can adopt Zypher tokens for internal settlements or incentive tokens to attract more users and developers. Such bilateral expansion significantly increases token transaction frequency and overall value.
AI-Powered Features
ZK Proof Payment: Before an AI Agent executes a reasoning task, it must submit a circuit and pay tokens to incentivize miners to generate ZK proofs.
Resource Scheduling & Compute Purchases: By staking and spending tokens, nodes can obtain higher compute quotas or priority in job scheduling, boosting AI inference speed and success rates.
Privacy Protection & Compliance: In highly sensitive or regulated scenarios, tokens may serve as collateral or security for auditing services, ensuring privacy or compliance-related tasks proceed smoothly.
Governance Rights Zypher token holders wield voting power in network governance decisions, such as:
Protocol upgrades, economic models, or consensus parameter changes
Product roadmap or ecosystem support programs
Major partnerships and cross-chain integrations As the community and project scale up, a decentralized governance structure ensures transparent decision-making and broad participation, allowing token holders to truly act as “masters” of the project.
Cross-Platform Collaborations
Multi-chain or Cross-chain Use: Zypher tokens can be bridged to other blockchains via cross-chain or Layer 2 technologies, further expanding token influence and usage.
Gaming & Virtual Worlds: In certain metaverses or virtual game worlds, Zypher tokens can function as access credentials or advanced unlockable items, enabling more diverse gameplay.
Alliance Partners & Derivative Ecosystems: Through deeper collaborations with mainstream projects (e.g., Risc0, EigenLayer, AI16Z), Zypher tokens can step into more fields, strengthening token value and liquidity.
