# Economics

## Token Overview

| Property     | Detail     |
| ------------ | ---------- |
| Token Name   | Zentachain |
| Token Symbol | CHAIN      |
| Standard     | ERC-20     |
| Network      | Ethereum   |
| Decimals     | 12         |
| Total Supply | 5,000,000  |

CHAIN is the native utility token of the Zentachain Network. It has a fixed genesis supply of 5,000,000 tokens that will never change.

***

## Token Allocation

| Category              | Allocation    | Percentage  | Status                                            |
| --------------------- | ------------- | ----------- | ------------------------------------------------- |
| Pre-Seed              | 1,000,000     | 20.00%      | Sold at $0.50 — Locked until Seed Sale completion |
| Seed (Public Auction) | 1,000,000     | 20.00%      | Upcoming Bid Auction ($1.00 – $10.00)             |
| Team                  | 1,375,000     | 27.50%      | Linear Quarterly Vesting (12 Quarters)            |
| Company               | 687,500       | 13.75%      | Linear Quarterly Vesting (12 Quarters)            |
| Community             | 137,500       | 2.75%       | Ecosystem Growth (12 Quarters)                    |
| Investors & Exchange  | 800,000       | 16.00%      | Exchange Liquidity at Listing                     |
| **Total**             | **5,000,000** | **100.00%** |                                                   |

***

## Seed Token Auction

The Seed allocation of 1,000,000 CHAIN tokens will be distributed through an English Auction with oversubscription.

### Auction Parameters

| Parameter        | Detail                        |
| ---------------- | ----------------------------- |
| Tokens Available | 1,000,000 CHAIN               |
| Starting Price   | $1.00 (FDV $5M)               |
| Ceiling Price    | $10.00 (FDV $50M)             |
| Price Increments | $0.10                         |
| Min Bid          | $100 USDT                     |
| Max Bid          | $50,000 USDT                  |
| Payment          | USDT (Ethereum Mainnet)       |
| KYC              | Sora Identity Verification    |
| Lock-up Bonus    | 1-year lock = 20% more tokens |

### How the Auction Works

1. **Verify & Register** — Complete KYC through Sora and connect your Ethereum wallet
2. **Place Your Bid** — Set your maximum price and USDT amount ($100 – $50,000), optionally select a 1-year lock-up for 20% bonus tokens
3. **Oversubscription** — If the ceiling price is reached, bidding continues; wallet activity and engagement help determine final allocation
4. **Auction Closes** — Bidding ends after 1 day of inactivity; the clearing price is set
5. **Settlement & Refund** — Allocations are computed; excess USDT is refunded; non-winners receive a full refund

### Auction Timeline

| Phase                           | Status |
| ------------------------------- | ------ |
| Registration                    | TBA    |
| Open Bidding                    | TBA    |
| Allocation Calculation          | TBA    |
| Withdrawal Period               | TBA    |
| Final Allocation & Distribution | TBA    |

### Eligibility

* Identity verification through Sora KYC required
* One wallet per participant
* Team and advisory members excluded
* Sanctioned countries excluded

{% hint style="info" %}
The 1-year lock-up grants 20% additional tokens but cannot be reversed once selected. Locked tokens will be distributed after the lock-up period ends.
{% endhint %}

***

## Vesting & Unlock Schedule

All token unlocks are milestone-based. Nothing enters circulation until the Seed Auction is completed and the token is listed on exchanges.

### Milestone Sequence

| Step | Milestone              | What Happens                                             |
| ---- | ---------------------- | -------------------------------------------------------- |
| 1    | Seed Auction completes | Seed tokens distributed to auction participants          |
| 2    | Exchange Listing       | CHAIN becomes publicly tradable; I\&E liquidity deployed |
| 3    | Quarterly Vesting      | Pre-Seed, Team, Company & Community begin linear unlock  |

{% hint style="warning" %}
Pre-Seed tokens (1,000,000 CHAIN) remain fully locked until the Seed Sale is completed. No Pre-Seed tokens enter circulation before this milestone.
{% endhint %}

***

### Pre-Seed Unlock

After the Seed Sale is completed, Pre-Seed tokens unlock linearly over **4 quarters (1 year)**.

| Quarter | Unlock  | Cumulative | % of Pre-Seed |
| ------- | ------- | ---------- | ------------- |
| Q+1     | 250,000 | 250,000    | 25%           |
| Q+2     | 250,000 | 500,000    | 50%           |
| Q+3     | 250,000 | 750,000    | 75%           |
| Q+4     | 250,000 | 1,000,000  | 100%          |

### Team Vesting

Linear quarterly vesting over **12 quarters (3 years)** starting at listing.

| Quarter    | Per Quarter   | Cumulative |
| ---------- | ------------- | ---------- |
| Q+1 – Q+11 | 114,583 CHAIN | —          |
| Q+12       | 114,587 CHAIN | 1,375,000  |

### Company Vesting

Linear quarterly vesting over **12 quarters (3 years)** starting at listing.

| Quarter    | Per Quarter  | Cumulative |
| ---------- | ------------ | ---------- |
| Q+1 – Q+11 | 57,292 CHAIN | —          |
| Q+12       | 57,288 CHAIN | 687,500    |

### Community Vesting

Linear quarterly vesting over **12 quarters (3 years)** starting at listing.

| Quarter    | Per Quarter  | Cumulative |
| ---------- | ------------ | ---------- |
| Q+1 – Q+11 | 11,458 CHAIN | —          |
| Q+12       | 11,462 CHAIN | 137,500    |

### Investors & Exchange

800,000 CHAIN deployed at listing for exchange liquidity provisioning. Fully unlocked at listing.

***

## Circulating Supply Projection

The table below shows the projected circulating supply per quarter after exchange listing. Q+0 is the listing quarter.

| Quarter | New Tokens Unlocked | Circulating Supply | % of Total Supply |
| ------- | ------------------- | ------------------ | ----------------- |
| Q+0     | Seed + I\&E         | 1,800,000          | 36.00%            |
| Q+1     | 433,333             | 2,233,333          | 44.67%            |
| Q+2     | 433,333             | 2,666,666          | 53.33%            |
| Q+3     | 433,333             | 3,099,999          | 62.00%            |
| Q+4     | 433,333             | 3,533,332          | 70.67%            |
| Q+5     | 183,333             | 3,716,665          | 74.33%            |
| Q+6     | 183,333             | 3,899,998          | 78.00%            |
| Q+7     | 183,333             | 4,083,331          | 81.67%            |
| Q+8     | 183,333             | 4,266,664          | 85.33%            |
| Q+9     | 183,333             | 4,449,997          | 89.00%            |
| Q+10    | 183,333             | 4,633,330          | 92.67%            |
| Q+11    | 183,333             | 4,816,663          | 96.33%            |
| Q+12    | 183,337             | 5,000,000          | 100.00%           |

{% hint style="info" %}
**Q+0:** Seed (1,000,000) and Investors & Exchange (800,000) enter circulation at listing. **Q+1 – Q+4:** Pre-Seed (250,000), Team (114,583), Company (57,292) and Community (11,458) unlock quarterly — total 433,333 per quarter. **Q+5 – Q+12:** Pre-Seed fully vested. Team, Company and Community continue — total 183,333 per quarter. All tokens are fully vested after 12 quarters (3 years).
{% endhint %}

***

## Token Utility

CHAIN serves multiple functions within the Zentachain ecosystem:

* **Staking & Governance** — Stake CHAIN to participate in network governance and earn rewards
* **Service Payments** — Pay for ecosystem services including Zentalk secure messaging and Zentanode operations
* **Node Rewards** — Zentanode operators who maintain the Zentamesh network receive CHAIN tokens as mining rewards

The token creates a circular economy where network participants are incentivized to secure the network through staking, operate infrastructure by running Zentanodes, utilize privacy-focused services like Zentalk, and contribute to the decentralized Zentamesh network.

{% content-ref url="use-cases" %}
[use-cases](https://docs.zentachain.io/chain-network/use-cases)
{% endcontent-ref %}

### Staking Pools

Three pools are live on mainnet with different APR rates and lock-up periods:

| Pool | APR | Min Stake   | Max Stake    | Unstake Lock |
| ---- | --- | ----------- | ------------ | ------------ |
| 0    | 12% | 1,000 CHAIN | 10,000 CHAIN | 7 days       |
| 1    | 16% | 2,000 CHAIN | 20,000 CHAIN | 14 days      |
| 2    | 20% | 5,000 CHAIN | 50,000 CHAIN | 28 days      |

* Rewards are minted directly — no pre-funded reward pool
* Compound staking available (add more tokens to existing stake)
* Claim rewards every 24 hours

### Zentanode Rewards

{% hint style="info" %}
There are currently no active Zentanodes on the network. The rewards structure below outlines the planned incentive model that will take effect once Zentanode operations begin.
{% endhint %}

| Metric                     | Value         |
| -------------------------- | ------------- |
| Target Zentanodes          | 500 nodes     |
| Monthly reward per node    | 25 CHAIN      |
| Total monthly distribution | 12,500 CHAIN  |
| Annual distribution        | 150,000 CHAIN |

### Governance

The CHAIN token community will maintain direct control over economic parameters through decentralized governance:

* **Inflation Management** — Propose and vote on adjustments to the Zentanode reward structure and token distribution rates
* **Product Price Independence** — Token rewards operate independently of Zentanode product pricing, enabling flexible monetary policy without affecting product economics

***

**Disclaimer**

This document is not intended to be an offer or solicitation for the purchase of CHAIN tokens. The information contained in this document includes hypothetical, forward-looking and/or projected figures that are not guaranteed to be accurate. Zentachain makes no representation or warranty, express or implied, as to the completeness or accuracy of this presentation and it is subject to change without notice.