Staking is Now Live on Mainnet

The $ZAMA token serves dual purposes in the Zama Protocol: it is used for transaction fees and for staking. Users pay fees in $ZAMA tokens for encryption and decryption processes, which are then burnt by the protocol, while tokens are minted at a 5% annual emission rate to compensate operators. The protocol employs a Proof-of-Stake mechanism, distinguishing operators into FHE nodes for encrypted computations and KMS nodes for threshold decryptions. Initially, there are 18 operators, including notable names like Artifact, Blockscape, and Etherscan. Operators must stake $ZAMA tokens to participate and earn rewards, which are divided 40% to FHE nodes and 60% to KMS nodes, with adjustments over time based on infrastructure costs. Token holders can delegate their tokens to operators, sharing in the rewards minus commissions, and receive liquid tokens reflecting their share of rewards. While rewards can be claimed anytime, stakes have a 7-day unbonding period. The staking portal, available at staking.zama.org, allows participants, including those from the Zama Public Auction, to stake their tokens as of February 2nd.