Solana-Based Zeta Markets Debuts Governance Token Z

On Tuesday, Zeta Markets, among the leading decentralized derivatives exchanges operating on the Solana blockchain, unveiled the introduction and distribution of its native token, named Z, as part of their efforts to evolve into a community-powered platform.

According to a press release obtained by CoinDesk, the governance token in Zeta allows users and community participants from the wider Solana network to have a say in significant decisions within Zeta and offers extra incentives for token holders who stake their tokens.

Approximately 100 million out of the 1 billion Z tokens in existence will be given out as part of an airdrop during the initial distribution. This allocation is intended for engaged Zeta traders, community members, token stakers, and individuals from significant Solana user groups.

The distribution of initial tokens will allocate 50% for active traders based on their Z-score or Zeta’s reward system. Stakers of Z will secure 40% of the tokens, while the remaining portion will be given to notable members within the Solana community.

Additionally, Zeta intends to allocate 30% of its total token supply as incentives for market makers. Market makers are essential participants who help provide deep liquidity and optimal trading conditions by offering buy and sell orders in the market and maintaining a balanced order book.

In simpler terms, the announcement mentioned that the launch of the governance token is just one aspect of a larger plan, which involves introducing Solana’s initial layer 2 scaling solution.

From the beginning, Zeta aimed to provide a compelling decentralized finance solution as an effective replacement for traditional, opaque financial systems. With a proven platform that has endured and supported transactions worth billions for tens of thousands of traders, we’re thrilled to introduce Z, the governance token of Zeta, to foster long-term alignment between users and the protocol.

“Frizza noted that this would give the community the ability to influence the direction of the protocol and have a say in significant choices, working together to create an exceptional decentralized exchange platform for all.”

Currently, approximately $21 million in cryptocurrencies are secured on Zeta Markets, ranking it as the fifth biggest derivatives platform operating on the Solana network, based on information from DeFiLlama.