Zama announces token staking details, will adopt liquidity staking method

Foresight News reports that the Zama team has announced details of the ZAMA protocol staking mechanism. 60% of the rewards are allocated to KMS operators and their delegates, while 40% are allocated to co-processor operators and their delegates. Rewards are distributed based on the square root of the total staked amount by the operator, aiming to incentivize users to delegate to smaller operators. The maximum commission charged by operators is 20%.

The Zama protocol uses a Delegated Proof of Stake (DPoS) mechanism, currently with 18 active operators, including 13 Key Management Service (KMS) nodes and 5 Fully Homomorphic Encryption (FHE) co-processor nodes. Staking rewards come from protocol inflation, initially set at 5% annually of the total ZAMA supply.

Users who stake ZAMA will receive liquid staking shares representing their positions. Unstaking has a 7-day unbonding period, or users can quickly exit by transferring or selling their liquid staking shares. The first batch of operators includes institutions such as Artifact, Luganodes, Etherscan, Fireblocks, Ledger, and LayerZero.