ZIGCOIN (ZIG) tokenomics

ZIGChain is a Layer 1 blockchain designed to democratize wealth generation by providing a modular infrastructure for delegated investment management. The native utility token of the ecosystem is ZIG, which serves as the core of its economic and security model.

Issuance Mechanism

ZIGChain utilizes the Mint module from the Cosmos SDK to regulate the issuance of ZIG tokens. This module is designed to ensure a sustainable token economy through controlled inflation and supply management. The issuance is tied to the network's Proof-of-Stake (PoS) mechanism, where new tokens are minted to provide block rewards.

Allocation Mechanism

The total supply of ZIG tokens on the mainnet is capped at 2,500,000,000 ZIG. The distribution is strategically divided to support the existing community, incentivize network security, and fund long-term ecosystem growth.

Usage and Incentive Mechanism

The ZIG token serves multiple primary functions within the ZIGChain ecosystem:

• Network Security and Staking: Users delegate ZIG tokens to validators to secure the network. In return, participants earn rewards derived from transaction fees and inflationary block rewards.
• Governance: ZIG holders can participate in decentralized decision-making. Each ZIG token represents one vote, allowing users to vote on proposals to change network parameters (such as fees or validator counts) or decide on treasury expenditures.
• Gas Fees: A small fee, known as the Gas Fee, is paid in ZIG for every transaction executed on the network.
• Wealth Management Engine: ZIG is the native currency for DeFi activities, including providing liquidity, serving as collateral for lending/borrowing, and receiving protocol rewards.
• Wealth Generation: Through the Wealth Management Engine, wealth managers can craft investment strategies that are tokenized, allowing ZIG holders to participate in returns and risks.

Locking Mechanism

ZIGChain employs a Staking module that enables validators and delegators to lock ZIG tokens. This locking is essential for the Tendermint Byzantine Fault Tolerance (BFT) consensus mechanism.

• Validators: Must lock tokens (self-stake plus delegations) to be selected for block production.
• Slashing: To enforce security, the network includes a slashing module that penalizes validators by taking a portion of their locked tokens for misconduct, such as double-signing or prolonged downtime.
• Wealth Management: Specific modules like the Wealth Management Engine may involve locking tokens to participate in certain investment strategies.

Unlocking Time and Emissions

The circulating supply of ZIG on the mainnet is approximately 1,726,440,444 ZIG (69.06%). The remaining tokens, specifically those allocated to Founders, the ZIGChain Foundation, and Stake Subsidies, are subject to specific constraints:

• Vesting and Lock-ups: These allocations are subject to lock-up periods, vesting schedules, and the meeting of specific economic conditions.
• Emissions Schedule: While specific monthly unlock dates were not detailed in the raw data, the project utilizes a formal emissions schedule to manage the release of non-circulating tokens into the market.
• Community Distribution: The majority of the circulating supply (56.56% of the total supply) is already held by the community, with additional portions allocated for ecosystem development (10.86% of circulating) and community rewards (7.24% of circulating).