ZKB tokenomics

ZKB is the native token of the ZKBase ecosystem and plays a crucial role in governance, staking, and liquidity mechanisms. The total supply of ZKB is 600 million, which was converted from ZKS tokens at a 1:1 ratio when ZKSpace upgraded to ZKBase. The distribution of ZKB tokens covers multiple parts, including the team, investors, and ecosystem development. To maintain the decentralized nature of the ecosystem, community-driven projects occupy a significant share of token distribution.

ZKB holders participate in platform governance, determining protocol upgrades, token listings, and other decisions affecting platform development through voting rights. Additionally, users can stake ZKB tokens to receive rewards based on the amount and duration of the stake. These reward mechanisms encourage long-term commitment to the platform, thereby promoting ecosystem stability.

ZKB holders can provide liquidity for trading pairs on ZKSwap and other decentralized exchanges within the ZKBase ecosystem. This mechanism supports trading activities and ensures smooth operation of the market. In return, liquidity providers can receive rewards, which not only promotes the sustainability of the ecosystem but also encourages more users to participate. The tokenomics of ZKB is designed to ensure that various participants, from ordinary users to developers, are incentivized, thereby driving the platform's continuous growth.

Cross-chain functionality: ERC-20 and BRC-20

ZKB's cross-chain functionality allows it to operate simultaneously in Ethereum's ERC-20 and Bitcoin's BRC-20 standards. In the Ethereum network, ZKB interacts with smart contracts and decentralized applications (dApps) as an ERC-20 token. This compatibility ensures that ZKB can integrate with a wide range of DeFi protocols, providing users with options for staking, trading, and governance.

ZKB has also expanded its application scope to the Bitcoin network through the BRC-20 standard. BRC-20 tokens are created using ordinal inscriptions on the Bitcoin blockchain, enabling decentralized token issuance and management without relying directly on smart contracts. This experimental token standard on Bitcoin opens up new possibilities for tokenized assets in the Bitcoin network while maintaining the unique characteristics of both networks.

The decentralized cross-chain bridge in the ZKBase ecosystem supports asset transfers between Ethereum and Bitcoin, making ZKB a versatile tool for users to interact in the two major blockchain ecosystems. This interoperability enhances the utility of tokens in multiple use cases, tightly connecting the two major mainstream blockchain platforms.

Highlights

• The total supply of ZKB is 600 million, used for governance, staking, and liquidity support.
• Governance functionality allows token holders to vote on protocol decisions.
• The staking function provides rewards to incentivize user participation in platform development.
• Cross-chain functionality supports ERC-20 and BRC-20 standards, enabling multi-chain applications.
• Cross-chain bridge supports the transfer of assets between Ethereum and Bitcoin, enhancing the interoperability and utility of tokens.