Since our inception, we have been driven by a vision to unlock wealth-generation opportunities for all. Launching our own blockchain — ZIGChain — scales this vision to uncharted heights as the Wealth Generation Infrastructure we are building shall make financial freedom possible for everyone worldwide.
Our mission is clear: decentralize wealth generation and make it accessible to the 99.9% excluded from traditional systems.
Establishing the ZIGChain Foundation
Central to achieving this mission is establishing the ZIGChain Foundation — an independent entity that will lead our decentralization efforts and drive the ZIGChain ecosystem forward.
Zignaly has a strong history of regulatory compliance. We’re the World’s First Licensed Social Investment Platform, with a Category 2 License from the Financial Services Conduct Authority of South Africa. This operates under one of the most advanced Digital Asset Regulation regimes in G20 countries.
We’re bringing this commitment to compliance and innovation to the ZIGChain Foundation. We’re collaborating with the brightest legal minds in the blockchain space to ensure its structure and operations are robust and future-proof.
The ZIGChain Foundation will play a crucial role in:
- Guiding the development and growth of the ZIGChain ecosystem
- Ensuring proper governance and decentralization of decision-making processes
- Facilitating partnerships to expand ZIGChain’s reach and utility
- Overseeing the implementation of community-driven initiatives
- Maintaining regulatory compliance across different jurisdictions
Our Commitment Continues
We, the founders, will personally donate 100 million tokens to the ZIGChain Foundation.
By consistently putting the project’s needs first, we’re setting a strong foundation for ZIGChain’s success and reaffirming our commitment to creating value for all stakeholders in our ecosystem.
Our continued commitment to the project and the donation seeks to address certain limitations of our current tokenomics structure:
- High circulating supply: With a large portion of tokens already in circulation, allocating resources effectively for ecosystem growth is challenging. Therefore, funding new initiatives, incentivizing network participation, and driving adoption becomes a hurdle.
- Lack of organized actors: Besides the founders, there is no organized actor focused on nurturing ecosystem development. This absence limits our ability to drive targeted growth, forge strategic partnerships, and implement comprehensive strategies for expanding the ZIGChain ecosystem.
- Centralization concerns: Having the founding team as the top token holders goes against our vision of a truly decentralized ecosystem. While this structure worked well in the early stages, we must now widely distribute token ownership and decision-making power.
However, although we are taking the first step forward, we recognize that this alone may not be enough. Given the aforesaid limitations, we see a compelling opportunity to evolve our tokenomics and empower ZIGChain Foundation as the leading entity. By doing so, we aim to increase decentralization, drive adoption, and ensure and ensure ZIGChain’s long-term sustainability.
The upcoming ZIGChain Mainnet launch requires transitioning from our current ERC-20 token to a native blockchain token. This necessary step presents a unique opportunity to implement crucial changes to our tokenomics, setting the stage for a sustainable and decentralized ecosystem.
$ZIG Tokenomics Changes and Allocation
On mainnet, we propose to increase the supply of $ZIG tokens by 25%, bringing the total supply to 2.5 billion, gross of all burns to date. The newly minted tokens will be allocated as follows:
- 75% (375 million tokens) will go to the ZIGChain Foundation for the validator program, ecosystem development, partnerships, and marketing efforts.
- 25% (125 million tokens) will be allocated to a Community Pool for pre-mainnet community staking rewards.
Allocating the tokens in this manner ensures the ZIGChain ecosystem has a strong foundation for growth and development while rewarding our dedicated community members with an additional opportunity to earn.
But that’s not all… as our donation ensures that the ZIGChain Foundation becomes the largest token-holding entity within the ecosystem for increased decentralization.
Now, let’s outline how the ZIGChain Foundation plans to allocate its budget:
- Stake Subsidies (39.5% — 187.5 million tokens): Paid out over a period of 4 years, stake subsidies allow our validator economic set to become self-sustainable. This allocation is crucial for maintaining the security and decentralization of ZIGChain.
- Ecosystem Development (39.5% — 187.5 million tokens): These funds will drive TVL (Total Value Locked) and user acquisition strategies, fostering the growth and adoption of our ecosystem. A large portion of this budget will be used within the first 4 years of our blockchain’s genesis.
- Sustainability Reserve (21% — 100 million tokens): This comprises the donation from us, the founders. These tokens will be released according to the schedule defined in the founders’ lock, unlocking in January 2025 and released linearly over 30 months. This reserve ensures the long-term sustainability of the ZIG Foundation’s efforts.
Empowering the ZIG Foundation with these resources sets the stage for a more robust, decentralized, and valuable ecosystem for everyone involved. The budget is divided in a way that balances immediate ecosystem development needs and long-term sustainability.
Ultimately, the token holders will be the ones to benefit the most from this budget allocation. As the ecosystem grows and becomes more self-sustaining, value accrual for $ZIG holders occurs through increased demand and utility for the token.
Community Pool and Staking Program
We’re excited to propose a special staking program utilizing the Community Pool of 125 million tokens. This pool will be split into two components to maximize benefits for our community.
Here are the key takeaways:
- 125 million tokens are allocated for pre-mainnet staking.
- The first program, comprising 60 million tokens, will go live first and shall run until mainnet.
- Exact staking dynamics and reward structure are to be shared in due course, however, the rewards will be disbursed after mainnet on ZIGChain.
This staking program, coupled with the projected value accrual from the ZIG Foundation’s strategic efforts, creates a model that addresses immediate inflation concerns and sets the stage for long-term growth and sustainability.
What’s Next? Have Your Say
While we believe this tokenomics change is an important step towards creating long-term value for the ecosystem, we value decentralization and an empowered community above all else.
That’s why we’re putting the final decision directly in YOUR hands.
On the 5th of July 2024, we will launch an official SnapShot proposal where the ZIGDAO community can vote on whether or not to implement the proposed changes. The said vote will run for 7 days. Your vote carries real weight in shaping the future of $ZIG.
In the lead up to the vote, we shall be initiating a community outreach campaign comprising several AMA (Ask Me Anything) sessions including an Exclusive Founders’ AMA at 5PM UTC, 9th July 2024 to clarify any questions or concerns about the proposed tokenomics change. This is your chance to dive deep into the details and get clarity on any aspect of the proposal.
We urge every community member to participate actively in this process. Read the upcoming proposal carefully, ask questions, voice your opinions, and most importantly, cast your vote when the time comes.
Closing Thoughts
The changes we’ve outlined today — from the Founders’ donation of 100m $ZIG to empower the ZIGChain Foundation to our proposed new staking program — are designed to create a robust, sustainable ecosystem that benefits all stakeholders. By aligning our token structure with our expanded vision, we’re positioning $ZIG at the center of a thriving blockchain ecosystem.
In the following days, we will officially announce the SnapShot proposal and how you can have your say in shaping the future of $ZIG. Until then, we encourage you to join our community channels and stay updated on all the latest developments.
Finally, thank you to all our dedicated community members and supporters. Your passion and commitment drive us forward every day as we build a Wealth Generation Infrastructure that makes financial freedom possible for everyone worldwide.
