How does the ZetaChain (ZETA) coin redistribution system work?

ZetaChain's (ZETA) coin redistribution system incentivizes participation and long-term holding with rewards from transaction fees, epoch staking, and active network involvement.

Dec 23, 2024 at 08:14 am

Key Points:

• ZetaChain (ZETA) is a blockchain protocol that enables cross-chain interoperability.
• The ZETA coin redistribution system rewards users for holding and actively参与ing in the network.
• The system also includes a "destruction" mechanism that reduces the total supply of ZETA over time.

ZetaChain (ZETA) Coin Redistribution System

ZetaChain's coin redistribution system is designed to incentivize participation and reward long-term holders of ZETA. The system operates on a three-part mechanism:

1. Coin Redistribution

• 10% of the transaction fees generated on the ZetaChain network are allocated to ZETA holders.
• The rewards are distributed proportionally to the amount of ZETA held in non-custodial wallets.
• The rewards are distributed on a daily basis.

2. Epoch Staking

• Holders can stake their ZETA to earn additional rewards.
• Epoch staking rewards are calculated based on the amount of ZETA staked, the duration of the stake, and the performance of the block producers.
• The current epoch staking rewards are approximately 5% APY.

3. Network Participation Rewards

• Users who actively参与te in the ZetaChain network can earn rewards for:

  • Running a node
  • Providing liquidity to the ZetaChain DEX
  • Developing new dApps on ZetaChain
• The rewards for network participation are determined by the ZetaChain team based on the contributions of each participant.

Coin Destruction Mechanism

In addition to coin redistribution, ZetaChain also includes a "destruction" mechanism. This mechanism reduces the total supply of ZETA over time by:

• Burning a portion of the transaction fees collected by the network.
• Burning a portion of the rewards earned by epoch stakers.

The destruction mechanism helps to maintain the scarcity of ZETA and increase its value over time.

FAQs

Q: What are the benefits of holding ZETA?

A: Holders of ZETA can earn rewards from coin redistribution, epoch staking, and network participation. Additionally, the destruction mechanism helps to increase the value of ZETA over time.

Q: How can I earn rewards from coin redistribution?

A: To earn rewards from coin redistribution, you must hold ZETA in a non-custodial wallet. Rewards are distributed daily based on the amount of ZETA held.

Q: How can I stake my ZETA?

A: To stake your ZETA, you can use the ZetaChain staking portal. Staking rewards are calculated based on the amount of ZETA staked, the duration of the stake, and the performance of the block producers.