February 2026 Summaries

ERC-7984 is a new token standard that aims to combine the programmability and auditability of blockchain with the financial privacy typical of traditional banking. Unlike standard ERC-20 tokens, ERC-7984 keeps token balances and transaction details encrypted, ensuring privacy even during computation on the blockchain. This innovation is powered by Fully Homomorphic Encryption (FHE), allowing mathematical operations on encrypted data without decryption, and is implemented in Zama's protocol. The Zama Protocol, which includes a network of off-chain coprocessors and a threshold key management system, supports this by performing encrypted computations without revealing actual balances. This approach ensures privacy by default while allowing selective transparency for compliance purposes. ERC-7984 is envisioned to become as common as regular tokens, facilitating confidential transactions across various applications like private DeFi, corporate payroll, and institutional settlement, without requiring changes to existing blockchains. Despite the challenges of higher computational costs, ongoing improvements aim to make confidential tokens more efficient and accessible, with support from industry leaders like OpenZeppelin and the Confidential Token Association.

Zama Protocol's mainnet went live on December 31, 2025, marking a significant milestone in the development of Fully Homomorphic Encryption (FHE) as it entered mainstream use with the launch of Zama Auction on January 21, 2026. This transition from testing to production has been supported by a developer community that has contributed to pushing the limits of blockchain technology. Drawing parallels to the transformative effect of HTTPS on the internet, Zama Protocol aims to be a foundational layer for blockchain applications, enabling secure and private transactions such as trading, voting, and identity verification without compromising confidentiality. The Zama Developer Program offers three tracks—Builder, Bounty, and Startup—to support developers at various stages, providing grants and resources for creating real-world applications, templates, and viable businesses utilizing the protocol's capabilities.

The $ZAMA token has officially launched, with trading set to begin on all major exchanges on February 2, 2026, at 1:00 PM UTC, marking a significant step in enhancing confidentiality on public blockchains. As a utility token within the Zama Protocol, $ZAMA is integral for transactions involving encryption and decryption, and it rewards network operators and stakers, with fees being burned and rewards minted based on an annual schedule. Eligible users can claim their $ZAMA tokens starting at Noon UTC on the same day, with different portals designated for Community Sale and Public Auction participants, and bonuses from the Public Auction will be airdropped into wallets shortly after claims open. The protocol also encourages token holders to stake their $ZAMA to secure the network and earn rewards, with support and documentation available online for staking, purchasing, and bridging the token through official Zama platforms.

The Zama Protocol utilizes Delegated Proof-of-Stake, allowing users to delegate their $ZAMA tokens to operators who maintain the network infrastructure, which includes 13 Key Management Service (KMS) nodes and 5 Fully Homomorphic Encryption (FHE) Coprocessors. Staking rewards, sourced from a protocol inflation rate of 5% per annum, are allocated 60% to KMS operators and 40% to Coprocessor operators, with distribution favoring smaller operators to promote decentralization. Operators can charge a commission up to 20% before distributing rewards to delegators, who receive liquid staking shares representing their positions. Unstaking requires a 7-day unbonding period, though shares can be transferred or sold instantly. The genesis operators include a mix of FHE Coprocessors and KMS Nodes, and becoming an operator requires proving reliability on a testnet and staking a minimum of 0.5% of the circulating $ZAMA. Governance of the protocol requires majority approval from operators, with proposals managed through Aragon. Further information is available via the Zama staking portal and documentation.