Zeta Markets, the leading Solana-based decentralized exchange (DEX) for on-chain perpetual, has unveiled its $Z Governance Token today. This introduction symbolizes a pivotal moment in Zeta’s transition towards a fully community-driven protocol. The initiative aims to spur sustained growth and further Zeta’s mission to expedite the mass adoption of Solana while enhancing accessibility to the decentralized finance (DeFi) ecosystem.
Recent data from DeFiLlama underscores the rapid growth of Solana’s DeFi ecosystem, with total value locked (TVL) surging by an impressive 1900% to approximately $5 billion as of April 2024. March also witnessed a significant uptick in trading volumes, reaching a record-breaking $60 billion. Zeta Markets has been a beneficiary of this trend, reporting a new all-time high (ATH) in monthly trading volumes. In March alone, the platform facilitated over $1.2 billion in trades by more than 71,600 monthly active users.
Empowering the Community with $Z Token
As the governance token of the Zeta protocol, the $Z Token is designed to empower users and community members with decision-making authority within the protocol and the wider Solana ecosystem. This initiative introduces the vote escrow model to Solana and offers staking rewards to foster long-term alignment between the protocol and its stakeholders. The $Z Token has a total supply of 1,000,000,000 tokens, with the initial distribution structured as follows:
5%: Allocated to active traders and community members of Zeta based on their Z-Score, an ongoing points system on the platform.
1%: Reserved for users of Zeta who are also members of strategic communities within Solana.
4%: Distributed to $Z stakers as a reward for their sustained commitment to the protocol.
Post-token generation, a significant 30% of the token supply will be earmarked to incentivize maker and taker traders, recognizing their critical role in maintaining top-tier liquidity and ensuring optimal exchange conditions.
Tristan Frizza, the Founder of Zeta Markets, commented on the token launch, stating, “Zeta’s vision from day one has been to make decentralized finance a viable alternative to centralized, black-box financial systems. With a platform that has already stood the test of time and facilitated billions in volume for tens of thousands of traders, we’re excited to launch $Z, the governance token of Zeta, to closely align the long-term interests of users with the protocol.”
Frizza continued by stating that the new initiative would empower the community to shape the future trajectory of the protocol and allow them to weigh in on important decisions as they collectively strive to deliver the ultimate DEX experience. Notably, the introduction of the $Z Token is just the beginning for Zeta Markets, as it aligns with the platform’s broader public roadmap.
Plans for this year include the release of Solana’s first Layer 2 (L2) rollup, marking a significant stride towards a more democratic and participatory future in decentralized finance. With the launch of the $Z Token, Zeta Markets aims to reward its active user base while also enabling them to play a pivotal role in determining the protocol’s future direction.