The company Zama, known for its expertise in full homomorphic encryption (FHE), is preparing to take a new step. The company will soon launch its mainnet and will, in the process, organize the very first Dutch sealed bid auction for its $ZAMA token. The French unicorn will use its own technology on this occasion to distribute tokens fairly. Let’s decipher this unprecedented operation right away! Le Journal du Coin offers you this promotional article in collaboration with Zama.
Zama puts privacy at the heart of the crypto sector
When we access a service, we trust a company to do not reveal information that we transmit to him. Trust has limits, because as everyone knows, there are sometimes data leaks or thefts. And this, even for companies renowned for their seriousness. Furthermore, if the blockchain transparency is positive for many reasons, it inherently excludes any confidentiality. This is why cryptography techniques like full homomorphic encryption (FHE) appear as solutions for process sensitive data without ever exposing its contentthereby eliminating the need to fully trust an entity. In this very complex area, Exist establishes itself as an expert in offering simple solutions for users. The open source cryptography company developing fully homomorphic encryption (FHE) solutions for blockchain was created in 2020 by Pascal Paillier and Rand Hindi. Several years after creation, the firm has the largest FHE research team. Also, she convinced many prestigious investors such as Pantera Capital, Multicoin Capital, Protocol Labs, Metaplanet and Blockchange Ventures. According to Rand Hindi, CEO of Zama, the mainnet should be launched by the end of the year, and will count various partners (Raycash, Orion Finance, Zaiffer, Shiba Inu, etc.). After thinking about the different possible options for distributing the tokens, the teams decided to carry out a Dutch sealed bid auction using the technology the Zama. And for Rand Hindi, the stakes are enormous:
This token auction represents much more than just a sale — it is the starting point for a confidential and compliant onchain financial system. Rand Hindi, CEO and co-founder of Zama.
Zama to distribute 10% of token supply using its own technology
The $ZAMA token, the cornerstone of the ecosystem
The $ZAMA token will constitute a strategic element of the ecosystem with several features :
security of the network et rewards for operators via staking
payment of fees encryption and decryption of data But then, how to obtain tokens? Zama will distribute 10% of the offer of tokens between January 12 and 15, via a Dutch sealed bid auction on Ethereum. This is a system that has shown its effectiveness, notably during Google's IPO.
A fair and quantified auction for investors
There will be four main stages to participate in the distribution of tokens:
phase 1 : after the launch of the mainnet, participants must convert their stablecoins into confidential stablecoins (shielding).
phase 2 : from January 12 to 15, operators submit offers (price, quantity). The number of offers is unlimited, the price is transparent, but the quantity remains confidential.
phase 3 : end of the auction, tokens are allocated starting with the highest bids and until the available supply is exhausted. THE final price (clearing price) is set at the level of the last offer acceptedand all participants will therefore pay this same price. This phase will last from January 16 to 19.
phase 4 : recovery of tokens and possible refunds on January 20. Note that once the tokens receivedthey are immediately usable.
Zama innovates and uses its own technology for the distribution of its tokens!
Everything is decided after the auction
So after the auction and setting the final pricethree situations can arise. If theoffer exceeds final pricethe buyer receives his tokens and the surplus is refunded to him. If theoffer corresponds to the final pricehe gets his tokens. Finally, if theoffer is lowerit is rejected and the funds are returned. Finally, the mechanism chosen by Zama ensures flexibilitya equality between the participants, and a equitable distribution tokens. With this system, each participant pays the same final price and the confidentiality of bids prevents big wallets from dominating the auction. Quite logically, the confidentiality of the auction is ensured by the technology developed by Zama. The Dutch sealed-bid auction combined with Zama's technology allows its tokens to be distributed fairly, without favoring bots or large wallets. Zama therefore leaves speculation aside to focus on its mission: building the foundations of confidential and compliant on-chain finance.