Zeta Markets airdrop: How to apply for ZEX airdrop? Comprehensive interpretation of ZEX airdrop

How to apply for ZEX airdrop? Comprehensive interpretation of ZEX airdrop! Solana DeFi derivatives platform Zeta Markets announced that ZEX airdrop collection will begin at 18:00 on June 27, 2024, and collection will end at 17:45 on September 25, 2024 (90 days after TGE). Any unclaimed tokens will be returned to the community through incentives and events. So what is ZEX? What are ZEX token economics? How are ZEX tokens distributed? What is the short selling mechanism of ZEX? Today, the editor of this website will give you a detailed introduction to the comprehensive interpretation of ZEX. Friends who need it should not miss it!

1. Introduction to ZEX

ZEX is the native token of the derivatives protocol Zeta Markets on Solana. The staking mechanism will allow users to stake ZEX to unlock governance rights and additional incentives. ZEX’s token economics and token utility are designed to strategically align the interests of multiple stakeholders with the overall goals of the protocol. This alignment not only empowers the ZEX community, but also incentivizes the community to actively participate in guiding the direction of the protocol.

II. ZEX Token Economics

Total Token Supply: 1,000,000,000

ZEX Token Allocation

The largest portion (62.5%) of ZEX Token Supply is reserved for the community:

• 10% will be distributed via airdrop.
• 30% will be used for platform incentives, exclusively provided to traders.
• 22.5% will be given to the community treasury, funding includes Zeta multi-year creator and ambassador programs.
• The remaining 37.5% of the $ZEX token supply is reserved for contributors and investors, subject to a multi-year unlocking and vesting schedule.

3. Release Schedule

TGE Release Schedule

During TGE and the following weeks, the following unlocks will occur:

• Airdrop: ZEX’s airdrop will be distributed in 2 rounds. According to Z-Score, 8% of the supply will be airdropped to TGE traders. Upon launch, initial stakers of ZEX will be eligible for an additional airdrop (2% of supply) in the form of staked ZEX.

• Incentives: After the airdrop snapshot, the platform’s incentives for traders (30% within 90 months) will start from Epoch 1. See incentives for full details.

• Treasury: Meanwhile, community treasury (22.5% unlocked over 24 months) will support multi-year growth plans, including liquidity provision and Zeta’s creator and ambassador programs.

Long-term release schedule

Core protocol contributors and investors will have longer lock-in periods.

• Investors: Subject to 1 year cliff and 2 year vesting period.

• Contributors: Subject to 1 year cliff and 3 year vesting period.

This structure ensures that contributors and investors alike are aligned with Zeta’s long-term success.

IV. Airdrop Mechanism

A strategic allocation of 10% of the total ZEX token supply will be distributed via airdrops to build a broad stakeholder base and guide a healthy governance ecosystem. This will be accomplished by rewarding Zeta users for past participation, while encouraging long-term commitment by reserving additional allocations for ZEX stakers.

The airdrop will be conducted in two rounds.

Round 1 - Early Users and Solana Ecosystem (8% of total supply)

At launch, 8% of the total ZEX supply will be distributed to early users in recognition of their contribution to the growth of the platform :

7% of the total ZEX supply is exclusively available to traders according to Z-Score; market makers are not included in this distribution.

1% of the total ZEX supply as a bonus, based on Z-Score, is given to traders who are among the key community partners within the Solana ecosystem.

This means that without active trading on Zeta, no one will receive ZEX.

Recognizing the critical role our earliest backers play in Zeta’s success, OG (i.e. pre-Season 1) and Season 1 traders will be rewarded with loyalty boosts, with OG benefiting from larger boosts.

Round 2 - ZEX Stakeholders (2% of total supply)

After the token generation event ends, ZEX token holders will have the opportunity to stake their tokens for a flexible period, thereby earning gZEX as Returns (see the staking section below for more information).

In addition to receiving staking rewards, early stakers will be eligible for a second airdrop equal to 2% of the total ZEX supply, distributed proportionally based on their share of gZEX. The airdrop will come in the form of staked ZEX, issued one period after TGE (i.e. 28 days).

This approach is designed to reward and incentivize community members who are aligned with the project over the long term and committed to helping guide the protocol and its development.

Note: The second airdrop may involve a locking mechanism. More details will be announced in the coming weeks.

5. Token Utility

• Staking: Since its launch, staking will become a key feature of the token. Users will be able to stake ZEX for up to 4 years, unlocking governance rights and additional incentives.

• Governance: ZEX governs the Zeta protocol, the pioneer in voting to host the token economy on Solana. Over time, it will give community members the right to propose, discuss and vote on the future development of the protocol.

• Incentives: A significant portion of the ZEX token supply is set aside as a reward mechanism for traders to incentivize liquidity and trading activity.

6. Staking

Governance

Zeta’s governance framework is based on the innovative voting custody model pioneered by Curve on Ethereum, and introduces 2 new concepts. First, stakers are rewarded exponentially for the duration of their lockup – so more power is distributed to those who lock up for longer. Second, we introduced the ability for stake holders to gradually vest and unlock their tokens – providing users with more liquidity and limiting the supply shock to the ecosystem caused by large-scale unlocking.

To achieve this, our tokenomics will have two components:

• ZEX: transferable SPL token (Solana library, Solana’s fungible token standard), via airdrop and use The incentives of the protocol are distributed to users.
• gZEX: The pledged version of ZEX, non-transferable. gZEX represents the long-term commitment of users and therefore provides corresponding governance rights and enhanced incentives.

Calculate ZEX

Users will be able to stake ZEX for a predetermined period of time (up to 4 years) to earn gZEX. The amount of gZEX received for staking ZEX will be determined by the number of ZEX tokens locked and the staking period, according to the following formula:

gZEX Locked

Managing gZEX

gZEX has two different states - locked and Vesting - Allows users to manage the lifecycle of governance tokens and their benefits:

• Locked State: In this state, your gZEX balance and associated equity remain unchanged.

• Vested State: In this state, your gZEX is gradually unlocked and converted into withdrawable liquid $ZEX.

Boosting

Boosting is another great benefit of staking ZEX. By holding gZEX, traders will be able to receive additional incentives that magnify their rewards based on their total gZEX holdings. The goal of the boost is to allocate greater incentives to traders who also demonstrate a long-term commitment to the protocol and participate in governance through staking.

The user’s share of these additional rewards will be determined based on the user’s promotion score, calculated as follows:

where the above score refers to the user’s score in the entire incentive program - such as their Z-score.

7. Incentives

The platform incentive plan will be launched immediately after the airdrop snapshot and will serve two key goals. First, it will be a mechanism to gradually distribute token supply and governance rights to users. Secondly, it will play a key role in the growth strategy, incentivizing traders and market makers to achieve optimal trading conditions on the exchange.

This approach rewards those who directly enhance protocol liquidity and activity and ensures alignment between token holders and the success of the protocol.

The recommended incentive allocation is 30% of the total ZEX supply, with the release rate designed to gradually decrease. This phase-down is intended to be consistent with the agreement's transition to self-sufficiency and broader supply distribution.

Trader Incentives

Traders will be rewarded proportionally to the Z-score they achieve in each period. The Z-Score program will operate in a similar manner to the Season 1 and Season 2 implementation, however Z-Scores will no longer accrue across seasons. Instead, the Z-score will be reset at the beginning of each new stage.

ZEX tokens distributed to users at the end of the epoch will be calculated based on their individual Z-score relative to the total Z-score earned by all epoch participants. The main driver of the Z-Score is trading activity. Additionally, gZEX holders will benefit from additional incentives in the form of Boosting.

Market Maker Incentives

For each epoch, professional market makers will be rewarded for their role in creating the best trading conditions on the exchange. The market maker program is designed to incentivize various liquidity indicators to enhance users’ trading experience.

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