Tokenomics
As the global on-chain revolution continues, a greater share of the worlds population is entering web3. Having an effective consumer gateway where users can explore and earn from new and established web3 projects, engage in industry consumer narratives such as memecoins, and buy into vetted projects early on, is crucial to continuing the migration of the consumer from web2 to web3.
Similar to each of ZAP’s products—DROPS, LAUNCH, and LABS—the $ZAP token is a core part of the ZAP offering.
ZAP Tokenomics Principles
ZAP has created its platform and tokenomics with the following principles at its core:
A total supply of 350,000,000 of ZAP tokens
A fair and transparent Staking system, unifying the entire ZAP ecosystem
Transfer of value from projects to users, premised on chain-based metrics
Staking
Staking $ZAP entitles users to an array of benefits and rewards across the ZAP ecosystem. The first, and primary, benefit of having $ZAP staked is the passive yield, proportional to the amount staked in their chosen tier. This yield comes from the community treasury, which is vested over 4 years.
Additional benefits include more passive yields from ecosystem activity and proactive utility from interacting with ZAP and selected partner platforms.
The ZAP Staking program is designed to incentivise and reward ZAP token holders for on-chain activity, promoting growth across the broader web3 ecosystem. Users do not have to pick which area aligns more closely to their interests or objectives, or split their $ZAP across different staking options to maximise earning potential. One simple staking option provides exposure and upside across the entire ecosystem.
Passive Staking Rewards
Passive Earnings: Stake $ZAP tokens to earn consistent monthly emissions of $ZAP from the community treasury.
External Protocol Earnings: Exposure to all ZAP LABS projects including VC-backed projects and incubated projects through an airdrop of each token launched.
Memecoin Upside (Coming Soon): Stakers will be able to share a small amount of the supply of each memecoin launched on ZAP (1-2%) that will either be claimable on a time lock or when the token graduates to the DEX.
Proactive Utility Rewards
Stake-to-Earn Missions (Coming Soon): Whilst any user can access missions on ZAP DROPS to explore web3 projects and earn in exchange for their attention and time, only staked $ZAP users will have access to exclusive missions that come with their own benefits such as exclusive reward allocation.
XP Multipliers (Coming Soon): Staking on ZAP also unlocks reward multipliers when completing missions on DROPS. As staked users complete missions they will earn multipliers on all XP earned across the ZAP DROPS platform.
Perks & Benefits
Preferential Prices: Staked $ZAP users will have access to exclusive private sale offerings at preferential prices to Public Sales.
No Dilution: Token Sales on ZAP can oversubscribe meaning users who have bought tokens will get diluted. Staking $ZAP will mean that you get protections around a portion of your purchased tokens, preventing them from being diluted.
Vaults
ZAP Vault holders are a cornerstone of the ecosystem. ZAP Vaults provide their holders an array of perks when the tokens within are staked.
Frontrun Rewards: Earn APY on your future token emissions whilst staked in any of the ZAP staking pools.
Multipliers: Earn an APY multiplier on already emitted tokens if you bought your vault pre TGE for an even higher APY.
Soulbound NFT: Vault Holders will receive a Soulbound NFT assigned to the wallet associated with their Vaults. This NFT will have future utility baked into it over time, providing ZAP Vault holders with exclusive perks and benefits.
ZAP Vault holders have a high customer lifetime value, and therefore it’s attractive for our partners to market to them directly. We’ll be scheduling vault exclusive airdrops, including 10% of the CTZN NFT for Vault stakers.
Burning
To ensure the long-term deflationary nature of the $ZAP token and enhance the value accrual to both token holders and stakers, ZAP will operate a burn based gamification layer across the platform. Users burning tokens, once staked, will be able to access limited and exclusive benefits such as skins, NFTS, discord roles, and more through burning tokens.
The first iteration of this gamification layer is scheduled for Q4 2024.
Project Buy-In
Web3 projects can interact with the ZAP ecosystem in a number of ways. One of the most important interactions is the requirement to Stake or Burn $ZAP tokens to create missions on the forthcoming, permissionless ZAP Drops, and provide incentives for users as well as secure incubation and Private/Public Sales on the platform.
Distribution
Ecosystem Overview:
Total Supply: 350,000,000 tokens
Token Ticker: $ZAP
Contract Address:
Network: Base
Community Treasury (25%)
The Community Treasury is ZAP’s primary method of rewarding and incentivising its stakers, holders, and users. The Treasury will be used for providing APY rewards, trading competitions, and other token based incentives, as well as ongoing airdrops to bootstrap new campaigns. 1% of the ZAP supply will be airdropped to users of the platform, from testnet until snapshot.
Vault Sale (Public) (20%)
The ZAP Vault sale was run to offer Vaults that come with exclusive perks such as APY multipliers, Discord Roles, early access to private sales and more for early adopters of the ZAP ecosystem. These tokens are distributed only to ZAP Vault Holders. By the time of the TGE, earliest vault holders would have vested 40% of their total tokens. The vaults total vesting time is 900 days from the sale. More info can be found in the Vault Sale gitbook.
Team and Contributors (25%)
25% has been allocated to the core team and contributors of ZAP, as well as future team members and expansion efforts. These tokens have a significant cliff to ensure alignment of incentives and long term buy in from the team. After the cliff these tokens are then vested slowly to ensure continued delivery on the ZAP vision. All team tokens will be liquidated through professional market making partners when applicable.
Investors (15%)
Our Investors are all vested at the same pace, and all private sale tokens are committed to our early institutional and angel investors. These tokens are vested daily linear after the initial TGE vesting and consequent cliff.
IDO (1%)
As part of the Bybit Listing ZAP will run a small IDO.
Liquidity & Market Making (9%)
We have allocated a total of 9% of the supply toward market making and liquidity services. This will allow a healthy, liquid trading environment for the ZAP token both on and off chain. This includes both CEX and DEX activities, with the initial focus being on Bybit and Aerodrome.finance.
Advisors (5%)
We have had some great external help along the way to enable ZAP to get to where it is. As such we have allocated a small portion of around 5% to these external contributors, with a 6 month cliff to help ensure continued support and assistance in the key period post TGE. All advisors will liquidate through our professional market making partners when applicable.
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