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86 changes: 29 additions & 57 deletions docs/about/token-utility/distribution.md
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# ZETA Distribution

The initial supply of ZETA is distributed across the following allocations. The
total initial supply of ZETA is 2,100,000,000. After approximately 4 years based
on a set curve, the protocol will plan to initiate a target of ~2.5% yearly
inflation based on the current circulating supply. ZetaChain also has a
governance model that allows for additional monetary policy to promote its goal
of long-term sustainability.
The initial supply of ZETA is distributed across the following allocations. The total initial supply of ZETA is 2,100,000,000. After approximately 4 years based on a set curve, the protocol will plan to initiate a target of ~2.5% yearly inflation based on the current circulating supply. ZetaChain also has a governance model that allows for additional monetary policy to promote its goal of long-term sustainability.

## Token Information

| | |
| -------------------- | ------------- |
| Token Name | ZETA |
| Total Initial Supply | 2,100,000,000 |
| Token Name | ZETA |
| --- | --- |
| Total Supply | 2,100,000,000 |

## Token Distribution

| Type | Percentage | Total |
| ----------------------- | ---------- | ----------- |
| User Growth Pool | 10.00% | 210,000,000 |
| Ecosystem Growth Fund | 12.00% | 252,000,000 |
| Validator Incentives | 10.00% | 210,000,000 |
| Liquidity Incentives | 5.50% | 115,500,000 |
| Protocol Treasury | 24.00% | 504,000,000 |
| Core Contributors | 22.50% | 472,500,000 |
| Purchasers and Advisors | 16.00% | 336,000,000 |
| Type | Percentage | Total | Schedule |
| --- | --- | --- | --- |
| User Growth Pool | 10.00% | 210,000,000 | 4.5% at launch. 0.2% unlocked per month for 5 months after the first month. Starting 6 months after launch, 1/36 of the remaining tokens will be unlocked monthly for 36 months. |
| Ecosystem Growth Fund | 12.00% | 252,000,000 | 1.5% at launch. Starting 6 months after launch, 1/42 of the remaining tokens unlocked monthly for 42 months. |
| Validator Incentives | 10.00% | 210,000,000 | Distributed through block emissions over 4 years. |
| Liquidity Incentives | 5.50% | 115,500,000 | 3% at launch. 1/48 of remaining unlocked per month beginning at launch. |
| Protocol Treasury | 24.00% | 504,000,000 | 2% at launch. After 12 months, 1/36 of the remaining will be unlocked monthly for 36 months. |
| Core Contributors | 22.50% | 472,500,000 | Starting 6 months after launch, for a period of 6 months, 1/18 will be unlocked per month. After 12 months, 1/36 will be unlocked monthly for 24 months. |
| Purchasers and Advisors | 16.00% | 336,000,000 | Starting 6 months after launch, for a period of 6 months, 1/18 will be unlocked per month. After 12 months, 1/36 will be unlocked monthly for 24 months. |

## User Growth Pool
Holders who have locked ZETA may use the ZETA to stake to validators in order to provide security to the network and validate transactions.

This portion is allocated towards incentivizing usage and growing the user-base
of ZetaChain. This will be distributed through various initiatives which are
based on active, meaningful user behaviors. For example, this portion will be
used for programs like the ZetaLabs airdrop, wallet campaigns, and other
community-focused rewards to raise awareness of ZetaChain utility features and
usage thereof.
# User Growth Pool

## Ecosystem Growth Fund
This portion is allocated towards incentivizing usage and growing the user-base of ZetaChain. This will be distributed through various initiatives which are based on active, meaningful user behaviors. For example, this portion will be used for programs like the ZetaLabs airdrop, wallet campaigns, and other community-focused rewards to raise awareness of ZetaChain utility features and usage thereof.

This portion is allocated towards partners and developers contributing to the
ZetaChain ecosystem. For example, incentives to help dApp developers get started
through a grant program or for wallet partners to support ZetaChain natively.
# Ecosystem Growth Fund

## Validator Incentives
This portion is allocated towards partners and developers contributing to the ZetaChain ecosystem. For example, incentives to help dApp developers get started through a grant program or for wallet partners to support ZetaChain natively.

A portion of the total initial supply (10%) is allocated to the initial
emissions pool on ZetaChain. This pool allows for block rewards targeted to
sustain and secure the network over the first 4 years of network growth. After
this pools is depleted, the protocol will introduce a planned 2.5% inflation
through validator rewards, separate from the emission curve. You can read more
about Validator Incentives and distributions
[here](/about/token-utility/validators/).
# Validator Incentives

## Liquidity Incentives
A portion of the total initial supply (10%) is allocated to the initial emissions pool on ZetaChain. This pool allows for block rewards targeted to sustain and secure the network over the first 4 years of network growth. After this pools is depleted, the protocol will introduce a planned 2.5% inflation through validator rewards, separate from the emission curve. You can read more about Validator Incentives and distributions [here](https://www.zetachain.com/docs/about/token-utility/validators/).

The assets managed by the network's TSS have an allocation of rewards that
incentivize providing liquidity that is usable on zEVM. This portion is
allocated towards incentivizing liquidity that is crucial for the protocol and
ecosystem to function and maintain stability, in order to facilitate
low-slippage and minimal gas-usage transfers of value through and on ZetaChain.
# Liquidity Incentives

To incentivize liquidity in pools such as the Core ZRC-20 pools, this pool will
be used to provide on-chain incentives for them to help bootstrap a seamless
transaction experience for users and developers.
The assets managed by the network’s TSS have an allocation of rewards that incentivize providing liquidity that is usable on zEVM. This portion is allocated towards incentivizing liquidity that is crucial for the protocol and ecosystem to function and maintain stability, in order to facilitate low-slippage and minimal gas-usage transfers of value through and on ZetaChain.

## Protocol Treasury
To incentivize liquidity in pools such as the Core ZRC-20 pools, this pool will be used to provide on-chain incentives for them to help bootstrap a seamless transaction experience for users and developers.

The treasury pool is allocated towards ecosystem and community initiatives aimed
at improving the ZetaChain ecosystem such as network insurance, bug bounties,
protocol development and bounties, and operations.
# Protocol Treasury

## Core Contributors, Advisors, and Purchasers
The treasury pool is allocated towards ecosystem and community initiatives aimed at improving the ZetaChain ecosystem such as network insurance, bug bounties, protocol development and bounties, and operations.

ZETA are allocated to Purchasers as well as Core Contributors and Advisors who
earned tokens for their contributions to the ZetaChain network.
# Core Contributors, Advisors, and Purchasers

ZETA are allocated to Purchasers as well as Core Contributors and Advisors who earned tokens for their contributions to the ZetaChain network.

:::note

Disclaimer: The above details are the current thinking and models with regard to
ZetaChain and ZETA. They are subject to variations for the ZetaChain mainnet and
further developments thereafter.
***Disclaimer: The above details are the current thinking and models with regard to ZetaChain and ZETA. They are subject to variations for the ZetaChain mainnet and further developments thereafter.***

:::
96 changes: 18 additions & 78 deletions docs/about/token-utility/validators.md
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# Validator Incentives

Validator incentives are structured such that operators are remunerated for
their efforts in securing the network, offsetting operational costs and risk
involved in staking ZETA to run a Validator. Although the proportion of
distribution over time may be changed via parameter changes/protocol upgrades,
the amount dedicated to rewards is fixed.
Validator incentives are structured such that operators are remunerated for their efforts in securing the network, offsetting operational costs and risk involved in staking ZETA to run a Validator. Although the proportion of distribution over time may be changed via parameter changes/protocol upgrades, the amount dedicated to rewards is fixed.

## Validator types

Validators are comprised of 3 different roles: Core Validators, Observers, and
TSS Signers. Fees from transactions and rewards are distributed to Validators in
return for their service of processing transactions and keeping the network
secure.
Validators are comprised of 3 different roles: Core Validators, Observers, and TSS Signers. Fees from transactions and rewards are distributed to Validators in return for their service of processing transactions and keeping the network secure.

> _Note: in general, Observers and TSS Signers are technically separate but will
> be batched together for operators such that an operator is either running a
> Core Validator or an Observer-Signer Validator. Core Validator u prerequisite
> to being an Observer-Signer (Observer-Signers will run all 3 roles,
> technically). Observer-Signers receive 25% of block rewards and Core
> Validators receive the other 75%. At launch, it is planned such that the top
> 100 Core Validators on total stake will be eligible to participate in
> consensus. 9 validators will comprise the initial Observer-Signer set. These
> numbers will increase over time further the decentralization of the network._
> *Note: in general, Observers and TSS Signers are technically separate but will be batched together for operators such that an operator is either running a Core Validator or an Observer-Signer Validator. Core Validator u prerequisite to being an Observer-Signer (Observer-Signers will run all 3 roles, technically). Observer-Signers receive 25% of block rewards and Core Validators receive the other 75%. At launch, it is planned such that the top 42 Core Validators on total stake will be eligible to participate in consensus. 9 validators will comprise the initial Observer-Signer set. These numbers will increase over time further the decentralization of the network.*
>
Here we define the different functions of validators and their allocation of the
validator block incentives.
Here we define the different functions of validators and their allocation of the validator block incentives.

**Core Validators (75%)**

These provide consensus for ZetaCore (ZetaChain’s base blockchain). These will
support general PoS mechanics and delegation from users. Anyone will be able to
run a validator to earn rewards by securing the network. Users may delegate
stake to any existing operator, or run their own validator.
These provide consensus for ZetaCore (ZetaChain’s base blockchain). These will support general PoS mechanics and delegation from users. Anyone will be able to run a validator to earn rewards by securing the network. Users may delegate stake to any existing operator, or run their own validator.

**Observer Validators (12.5%)**

These observe external chains and send relevant events to the Core Validators.
Observation will eventually become less important with further
verification/proof development, so the portion of rewards allocated to Observers
will eventually transition more to TSS Signers via governance-based upgrades.
These observe external chains and send relevant events to the Core Validators. Observation will eventually become less important with further verification/proof development, so the portion of rewards allocated to Observers will eventually transition more to TSS Signers via governance-based upgrades.

**TSS Signer Validators (12.5%)**

When ZetaChain wants to write receiving info from Core Validators transactions
to different chains, it uses a network of TSS Signers to write in a
decentralized manner.

## Validator block rewards curve

Validator incentives are programmed into the protocol itself and distributed to
the validator set according to this pre-programmed curve that currently looks
like:

$$
Reward=RemainingReserveAmount \times \dfrac{TargetBondedRatio}{BondedRatio} \times \dfrac{month\times log(1 + 0.052 / 12)}{1 + (month * log(1 + 0.052/12))}
$$

Emissions follow a fixed curve based on time/block. Validators earn rewards
based on this curve and their securing the network. Rather than an exponential
decay like some other protocols have adopted, this model coincides with the
growth of overall circulating supply, incentivizing validators to operate longer
while still being compensated sufficiently for the real costs (hardware costs,
operational costs) as well as risk involved in putting up stake.

As this initial genesis pool tends lower, the protocol will introduce a planned
2.5% inflation through validator rewards separate from the emission curve at a
certain block height estimated at 4-5 years after the start of the network. This
inflation rate, at this shift, will replace the existing rate of validator
emissions. Beyond this time, the inflation rate will be adjustable by the
network via governance.

In addition, there is a factor of the bonded ratio and a target bonded ratio
that is bounded. If the bonded ratio goes over the target, the emissions will
reduce, and if the bonded ratio goes lower, the emissions will increase, helping
incentivize more or less staking/bonding over time. However, the core emission
curve and pool remains the same. Note that the bonded ratio also applies to
inflation, so the inflation rate can oscillate based on the ratio of bonded to
unbonded ZETA. The inflation curve will look like:

$$
RewardPerEpoch =
TotalCirculatingSupply*0.025/(YearTime/EpochTime)*\dfrac{TargetBondedRatio}{BondedRatio}
$$
When ZetaChain wants to write receiving info from Core Validators transactions to different chains, it uses a network of TSS Signers to write in a decentralized manner.

## Validator block rewards

The initial 10% total supply pool of validator incentives are programmed to distribute over the first 4 years after the launch of the network. Emissions are fixed based on time/block. Validators earn emissions based on this curve and their securing the network.

As this initial genesis pool tends lower, the protocol will introduce a planned 2.5% inflation through validator rewards separate from the emission curve at a certain block height. This inflation rate, at this shift, will replace the existing rate of validator emissions. Beyond this time, the inflation rate will be introduced and adjustable by the network via governance.

In addition, there is a factor of the bonded ratio and a target bonded ratio that is bounded. If the bonded ratio goes over the target, the emissions will reduce, and if the bonded ratio goes lower, the emissions will increase, helping incentivize more or less staking/bonding over time. However, the core emission curve and pool remains the same.

## Unlock Period

Any stake has an unlock period of 21 days. Rewards are allocated to
delegators/stakers, but to withdraw them, one must wait 21 days to receive them.
Any stake has an unlock period of 21 days. Rewards are allocated to delegators/stakers, but to withdraw them, one must wait 21 days to receive them.

## Slashing

To ensure network liveness and safety, deviation from the protocol by the
validators will be penalized by slashing their bonded ZETA. This could include
standard Cosmos SDK defined slash-able violations such as missed votes on
blocks, conflicting votes on blocks, etc., for core validators. Besides that,
for observer-signer validators, additional behaviors will be penalized by
slashing the accompanying core validator staked ZETA. Such behaviors may include
repeatedly failing to observe relevant external events, reporting incorrect
events, failing to join the TSS keygen or keysign party, etc.
To ensure network liveness and safety, deviation from the protocol by the validators will be penalized by slashing their bonded ZETA. This could include standard Cosmos SDK defined slash-able violations such as missed votes on blocks, conflicting votes on blocks, etc., for core validators. Besides that, for observer-signer validators, additional behaviors will be penalized by slashing the accompanying core validator staked ZETA. Such behaviors may include repeatedly failing to observe relevant external events, reporting incorrect events, failing to join the TSS keygen or keysign party, etc.
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To pay for the transaction fees to deploy and interact with the cross-chain
messaging contracts you will need native gas tokens on the connected chains you
are deploying contracts to. You can find a list of recommended faucets
[in the docs](https://www.zetachain.com/docs/reference/get-testnet-zeta/).
[in the docs](/reference/get-testnet-zeta/).

## Check Token Balances

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6 changes: 3 additions & 3 deletions docs/developers/omnichain/tutorials/bitcoin-frontend.md
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- [Node.js](https://nodejs.org/en/) installed on your machine with `npm` or
`yarn`
- Learn how to
[Deposit and call zEVM contracts from Bitcoin](https://www.zetachain.com/docs/developers/omnichain/bitcoin/).
[Deposit and call zEVM contracts from Bitcoin](/developers/omnichain/bitcoin/).

# Create a new project

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To call an omnichain contract from Bitcoin you need to send a token transfer
transaction to the ZetaChain's [TSS address](/reference/contracts) on Bitcoin
with a memo that conforms to
[the required format](https://www.zetachain.com/docs/developers/omnichain/bitcoin).
[the required format](/developers/omnichain/bitcoin).
The memo is composed of two parts:
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Open the page in your browser and fill in the form. You can test functionality
with your own contract address or follow one of the provided tutorials, for
example, the
[Staking](https://www.zetachain.com/docs/developers/omnichain/tutorials/staking/)
[Staking](/developers/omnichain/tutorials/staking/)
tutorial to deploy a contract that you can call from Bitcoin.
Fill out the form and click the "Send transaction" button. You will be prompted
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Expand Up @@ -47,4 +47,4 @@ function simply extracts params from the message, calls the Curve pool's
logic remains in the core Curve contract deployment. Users can interact by
depositing and calling this zEVM contract from an external chain. You can see
how you'd call this for a user programmatically
[here](https://www.zetachain.com/docs/developers/omnichain/zrc-20/).
[here](/developers/omnichain/zrc-20/).
2 changes: 1 addition & 1 deletion docs/reference/wallets.md
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- Network Name: `ZetaChain Testnet` (or choose another name)
- New RPC URL: `https://zetachain-athens-evm.blockpi.network/v1/rpc/public`
(or choose another one from
[the list](https://www.zetachain.com/docs/reference/api/))
[the list](/reference/api/))
- Chain ID: `7001`
- Currency Symbol: `tZETA`
- Block explorer URL: `https://athens3.explorer.zetachain.com/`
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3 changes: 2 additions & 1 deletion docs/validators/cosmovisor.mdx
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Expand Up @@ -113,7 +113,7 @@ cp network-athens3/network_files/config/* ~/.zetacored/config/
You may choose to sync the state of your node from a snapshot. This will speed
up the time it takes to sync your node. Instructions for syncing from a snapshot
can be found
[here](https://www.zetachain.com/docs/validators/running-a-full-node/#state-sync).
[here](/validators/running-a-full-node/#state-sync).

### Start the `cosmovisor` Service

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See more about your Validator Monitoring [here](/reference/validators-monitoring).

## More Information About Cosmovisor

For more detailed information about Cosmosvisor you can visit the [Cosmos Documentation Here](https://docs.cosmos.network/main/build/tooling/cosmovisor)

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