Zama announces token staking details, will adopt liquid staking method

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

The Zama protocol adopts a Delegated Proof of Stake (DPoS) mechanism, currently featuring 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% of the total ZAMA supply per year.

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