How much is the circulation of ZetaChain (ZETA) coins?

ZetaChain's initial circulating supply of 100 million ZETA coins ensures scarcity and maintains its value while enabling governance, incentivizing network participation, and powering gas fees across different blockchains.

Dec 23, 2024 at 10:33 am

Uncovering the Circulating Supply of ZetaChain (ZETA) Coins

Key Points

• ZETA coin's initial circulating supply fixed at 100 million tokens
• Native token for ZetaChain's cross-chain communication protocol
• ZETA tokens allocated for ecosystem development, community incentives, and governance
• Token circulation plays a crucial role in understanding ZETA's market dynamics

Circulation Supply Details

ZetaChain (ZETA) is a cross-chain communication protocol that enables decentralized applications (dApps) to communicate and exchange data across different blockchains. ZETA tokens are the native cryptocurrency of the ZetaChain ecosystem, facilitating governance, incentivizing network participation, and powering gas fees.

1. Initial Circulating Supply:

   Upon its Genesis launch in June 2022, ZetaChain introduced a circulating supply of 100 million ZETA tokens. This fixed supply ensures a scarcity of tokens and maintains the value of ZETA as the network grows.

2. Token Allocation:

   ZETA tokens were initially allocated as follows:

   • Ecosystem Development (45%): Supporting the growth and adoption of ZetaChain through strategic partnerships, developer incentives, and community events.
   • Community Incentives (25%): Rewarding community members for participating in network maintenance, creating content, and promoting ZETA adoption.
   • Governance (10%): Empowering ZETA holders to participate in the decision-making process of the network's governance model.
   • Liquidity Provision (10%): Ensuring sufficient liquidity on cryptocurrency exchanges and decentralized finance (DeFi) protocols.
   • Reserve (10%): Held as a financial cushion for future network developments and ecosystem support.

3. Current Circulation:

   As of February 17, 2023, the circulating supply of ZETA coins stands at approximately 100 million tokens. This aligns with the initial circulating supply, indicating that no additional tokens have been introduced into the market.

4. Market Dynamics:

   ZETA's circulating supply plays a significant role in determining its market dynamics. A limited circulating supply can contribute to price appreciation as demand for the token increases, while a large circulating supply can lead to downward pressure on prices.

Frequently Asked Questions (FAQs)

Q1. What factors could affect the circulation of ZETA coins?

A1. Several factors can influence ZETA's circulation, including token unlocking schedules, burning mechanisms, and network adoption.

Q2. What is the purpose of token allocation in ZETA's ecosystem?

A2. Token allocation ensures fair distribution and provides incentives for ecosystem development, community involvement, and network governance.

Q3. How is the value of ZETA coins determined?

A3. ZETA's value is determined by market supply and demand, influenced by factors such as network usage, tokenomics, and overall market sentiment in the cryptocurrency industry.

Q4. What are the potential risks associated with ZETA coin investment?

A4. As with any cryptocurrency, ZETA investments carry risks related to market volatility, technological advancements, and regulatory changes.