The ZKON token is the lifeblood of ZKON network ecosystem, pivotal in ensuring network economic security and gas to operate. ZKON's has a total 500,000,000 fixed supply model.
The main functionality of ZKON is to access ZKON network services. To become a participant of the network, nodes must stake ZKON tokens to participate and earn rewards for their contributions. The system counters inflation by burning tokens from nodes that acts maliciously. The protocol is ruled by its decentralized governance, driven by ZKON token holders, ensuring adaptability and community-centric decisions.
- Minting: A total of 500,000,000 ZKON tokens will be generated during the Token Generation Event (TGE). This sets a hard cap on the total supply, ensuring no additional ZKON tokens will ever be minted, thereby creating a fixed supply model.
- Burning: ZKON tokens will be systematically burned as part of a slashing mechanism designed to penalize Oracles that violate protocol rules. Additionally, the governance mechanism allows for community-driven decisions to burn tokens, further affecting the circulating supply.
- Securing the Network (Staking): Oracles are mandated to stake a certain amount of ZKON tokens to participate in the network. The staking mechanism not only secures the network but also influences Oracle selection for data verification tasks. Each Oracle must stake 500,000 ZKON to become eligible. Rewards are distributed at the end of each epoch, which lasts 24 hours.
- Slashing Mechanism: To uphold the network's integrity and reliability, a stringent slashing mechanism is in place. Oracles found to be engaging in dishonest practices or providing inaccurate data will be penalized by slashing 20% of their staked ZKON tokens. These slashed tokens are subsequently burned, reducing the overall supply and increasing scarcity.
- Reward Mechanism for Oracles: Oracles earn rewards in the form of ZKON tokens for successfully completing data verification tasks. The reward amount is dynamically calculated based on your role on the network:
- Oracle Rewards: 90% of the total rewards pool is allocated to Network Oracles. This incentivizes Oracles to provide accurate and timely data.
- Protocol Treasury: The remaining 10% of rewards go to the Protocol Treasury, which can be used for future development and ecosystem growth.
- Proposal Mechanism: Governance is fully decentralized, empowering ZKON token holders to propose changes or introduce new features to the network. To submit a proposal, a minimum threshold of staked ZKON may be required, serving as a spam deterrent.
- Voting: After a proposal is officially submitted, a voting period commences. During this time, ZKON token holders can cast their votes, which are weighted according to the number of tokens they hold. For a proposal to pass, it must secure a predetermined percentage of affirmative votes.
- Implementation: Once a proposal gains sufficient approval, it proceeds to the implementation stage. This could involve various actions such as burning or minting tokens, modifying the reward distribution algorithm, or implementing protocol upgrades. The implementation is usually carried out by the development team but is overseen by the community through a transparent process.
Economic Modelling Configuration Parameters
In ZKON Oracle network, configuration parameters play a pivotal role in shaping the network's security, efficiency, and overall functionality. These parameters are meticulously calibrated to align with the network's long-term objectives and governance model. Below are the key configuration parameters that govern our system:
- Minimum Staking Requirement: To become an Oracle in the network, a minimum of 500,000 ZKON tokens must be staked. This requirement ensures a commitment from participants and adds a layer of security to the network.
Please refer to the Quantitative Economic Model to understand the exact allocation based on the Oracle role that you play on the Network.
- Penalty for Misbehavior: Oracles that fail to adhere to the network's standards will be penalized by slashing 20% of their staked ZKON tokens. These slashed tokens will subsequently be burned, reducing the overall supply and increasing scarcity.
- Time Frame: Each epoch in our network lasts for 24 hours. This duration impacts the frequency of reward distribution and other time-sensitive network operations.
- d-Data Proofs Service Fee: The fee starts at 50 ZKON for the first year, reducing to 25 ZKON in the second year, 10 ZKON in the third year, and stabilizing at 5 ZKON from the fourth year onward.
- d-Auth Connector Service Fee: The initial fee is 100 ZKON for the first year, decreasing to 50 ZKON in the second year, 20 ZKON in the third year, and leveling off at 10 ZKON from the fourth year onward.
- Governance: The treasury is managed through a decentralized governance process, allowing token holders to propose and vote on the utilization of treasury funds for various network improvements and initiatives.
If you encounter any issues or have questions during the integration process, our support team is here to assist you.
Support Contact: Support Link
Thank you for choosing ZKON d-Auth Connector. We're excited to be a part of your journey towards a more secure and decentralized world.