What is the issuance and circulation of ZIGChain (ZIG) coins?

ZIG coins, the native cryptocurrency of the Zilliqa blockchain, facilitate transactions, incentivize miners, and power smart contract execution within the ecosystem.

Dec 09, 2024 at 06:26 pm

What is the Issuance and Circulation of ZIGChain (ZIG) Coins?

ZIGChain (ZIG) is the native cryptocurrency of the Zilliqa blockchain, a high-throughput public blockchain platform designed for scalability, security, and developer-friendliness. ZIG coins play a crucial role in the Zilliqa ecosystem, facilitating various transactions and operations within the network.

Issuance of ZIG Coins

The issuance of ZIG coins is governed by the Zilliqa Protocol, which defines the initial supply, distribution mechanisms, and future issuance schedule.

1. Initial Supply: The initial supply of ZIG coins was set at 21 billion coins, with 12 billion coins released during the Zilliqa Initial Coin Offering (ICO) in 2017. The remaining 9 billion coins were allocated to the Zilliqa Foundation for ecosystem development and strategic partnerships.
2. ICO Distribution: During the ICO, 12 billion ZIG coins were sold to public investors, raising approximately $22 million USD at the time. The ICO participants received pro-rata allocations based on their contributions.
3. Staking Rewards: Zilliqa employs a Proof-of-Work (PoW) consensus mechanism, which incentivizes miners to validate transactions and secure the network. Miners receive rewards in the form of newly minted ZIG coins, proportionally to their computational power contributed to the network.

Circulation of ZIG Coins

The circulation of ZIG coins refers to the total amount of coins in the market that are available for trading and use. This includes coins that have been issued and are not held by the Zilliqa Foundation or other entities.

1. Trading Volume: ZIG coins are traded actively on various cryptocurrency exchanges, including Binance, Huobi, and OKEx. The trading volume of ZIG coins reflects the demand for the cryptocurrency and its overall liquidity in the market.

2. Use Cases: ZIG coins are used for a variety of purposes within the Zilliqa ecosystem, including:

   • Transaction Fees: ZIG coins are used to pay for transaction fees on the Zilliqa blockchain, which incentivizes miners to process and validate transactions efficiently.
   • Staking: ZIG coins can be staked to participate in the Zilliqa consensus mechanism, earning rewards for supporting the network's security. Staking also allows holders to participate in the Zilliqa governance process.
   • Smart Contract Execution: ZIG coins are required to execute smart contracts on the Zilliqa blockchain. Smart contracts incur a gas fee for execution, payable in ZIG coins.
3. Burning Mechanism: Zilliqa has implemented a burning mechanism to control the supply of ZIG coins and potentially increase their value over time. A portion of the transaction fees collected on the network is periodically burned, reducing the overall supply of ZIG coins.
4. Supply Management: The Zilliqa Foundation manages the supply of ZIG coins through various measures, including setting issuance schedules, distributing coins for ecosystem development, and implementing burning mechanisms. The foundation strives to balance the supply and demand of ZIG coins to maintain a healthy market environment.