Tokenomics
Introducing XZK
· - XZK(ERC20) is the Mystiko.Network token.
· XZK contract address: https://etherscan.io/token/0xe8fC52b1bb3a40fd8889C0f8f75879676310dDf0
· XZK is the utility and governance token that operates the decentralized Mystiko.Network.
· Mystiko.Network positions itself as: The base layer of Web3. The universal ZK SDK, enhancing the scalability, interoperability, and safety of blockchains. Mystiko’s SDK enables developers to build blockchain applications that reduce costs, scale effortlessly, securely interact across chains, and protect users’ on-chain data (account balances, transaction histories, etc.).
Retrospection
Since its inception, Mystiko.Network has served as the trustless and extensively decentralized infrastructure for zero-knowledge (ZK) technology within blockchains. The deployment of Mystiko.Network V1 mainnet occurred in late March 2023, and within a year of its launch, Mystiko.Network V1 has:
· Supported over $270 million volume traded by over 136,000 unique addresses across 6 blockchains: Ethereum, BNB Chain, Polygon, Avalanche, Base and Linea.
· Empowered over 1.25 million transaction users to save significant sums in ZK costs
· Secured over $5 million in fee earnings for hundreds of ZK-Rollup miners and relayers in the network.
Having proven product-market fit for blockchain’s ZK infrastructure with a platform that has thrived independently, Mystiko.Network is now particularly well positioned for community-led growth, development, and self-sustainability. Mystiko.Network positions itself as:
· The base layer of Web3.
· The universal ZK SDK, enhancing the scalability, interoperability, and security of blockchains. Mystiko’s SDK enables developers to build blockchain applications that reduce costs, scale effortlessly, securely interact across chains, and protect users’ on-chain data (account balances, transaction histories, etc.).
To sustain such position, the introduction of XZK (ERC-20) serves this purpose, enabling shared community ownership and a vibrant, diverse, and dedicated governance system, which will actively guide the network towards the future.
Inspired by peer network’s vision including Ethereum and Uniswap, Mystiko.Network has always embraced trust minimization from day one: it is crucial that governance is constrained to where it is strictly necessary. Therefore, the Mystiko governance framework is limited to contributing to both protocol development and usage as well as development of the broader Mystiko ecosystem. In doing so, XZK officially enshrines Mystiko as publicly-owned and self-sustainable infrastructure while continuing to carefully protect its indestructible and autonomous qualities.
XZK Allocation
1 billion XZK have been minted at genesis. The initial allocation is as follows:
Below, you will find the XZK Distribution Vault details:
Vault Private Round Backers Address: 0x71D772DA2b2A97c02fc4115CEaDEF5f443592bc1 Allocation: 200,000,000
Vault Early User Rewards Address: 0x746A5f25Cf2C0F0b77350b8F2Eb8F639cF92185d Allocation: 7,000,000
Vault Contributors/Advisors Address: 0xA7e41a5062E36C38A7e747CAe13E901F6449C4f7 Allocation: 150,000,000
Vault Ecosystem — Genesis Marketing Address: 0x2D84BA48B8629F85F76d8C687115bE255c17947c Allocation: 50,000,000
Vault Ecosystem — Marketing & Community Building Address: 0x91AF7F02D8630d8e030cB08b73f014d0C3c83fA6 Allocation: 100,000,000
Vault Community Incentives Address: 0xBcaCA26cEA5e68c7265998ceAeD97E8B29Bc25d6 Allocation: 208,000,000
Vault Ecosystem — Application Developers Address: 0x0Eb2811c9F561f8cF0Ee5D1691F493f94Ab79b79 Allocation: 100,000,000
Vault Ecosystem — General Address: 0x4B6Ebcc8E41A17F44dEA282E65BF97149d5E1d26 Allocation: 110,000,000
Vault Community Round Backers Address: 0x8A1874A32c8B776765C30a077DE1287Ee678871F Allocation: 75,000,000
Vault Total Allocation: 1,000,000,000
XZK operation utility
XZK tokens are required to operate the network. Mystiko.Network’s operations rely on ZK-Rollup miners and relayers. To become ZK-Rollup miners/relayers, XZK token holders stake a reasonable amount of XZK.
· ZK-Rollup miners are operators who help batch users’ transactions into a ZK-Rollup, thus making transactions cheaper
· Relayers are operator who help users pay gas on the destination chain for better confidentiality
XZK Governance Functionality
XZK tokens are required to vote on network governance. Mystiko.Network is a self-governed decentralized community, in which technical/product/economic decisions are made through staked XZK token voting.
· Any addresses with more than 1% of XZK supply delegated to it may propose governance actions, which contain finished, executable code.
· When a proposal is created, the community can cast their votes during a 7-day voting period. If a majority, and at least 4% of XZK supply votes are cast for the proposal, it is queued, and may be executed in a minimum of 2 days.
· XZK holders are responsible for ensuring that governance decisions are made in compliance with applicable laws and regulations. To help facilitate this, the fee switch has been initialized to a contract XZK holders can use to vote on tokens for which they will collect fees. The community is encouraged to consult knowledgeable legal and regulatory professionals before implementing any specific proposal.
· After TGE, the core development team will continue to have no involvement in future protocol development, auditing, operating and other matters. Similarly, team members will not participate directly in governance for the foreseeable future, although they may delegate votes to protocol delegates without seeking to influence their voting decisions.
Contracts
XZK Token
https://etherscan.io/token/0xe8fC52b1bb3a40fd8889C0f8f75879676310dDf0
*This is a draft allocation plan only, subject to changes
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