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 confidentiality 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 privacy (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 $137 million volume traded by over 55,000 unique addresses across 5 blockchains: Ethereum, BNB Chain, Polygon, Avalanche, and Base.

· Empowered over 220,000 transaction users to save significant sums in ZK costs

· Secured over $1 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 confidentiality 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 privacy (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:

Category	Allocation	Release Schedule
Private Round Backers	200,000,000	1-year cliff after TGE, and then 2-year linear vesting
Community Round Backers	75,000,000	25% unlock at TGE, and then 12-month linear vesting
Early User Rewards	7,000,000	1 month cliff after TGE, and then 100% unlock
Core Contributors/Advisors	150,000,000	1-year cliff after TGE, and then 3-year linear vesting
Ecosystem – Genesis Marketing	50,000,000	25% unlock at TGE, and then 18-month linear vesting
Ecosystem – Marketing & Community Building	100,000,000	1 month cliff after TGE, and then 4-year linear vesting
Ecosystem – Liquidity Rewards	158,000,000	1 month cliff after TGE, and then 4-year linear vesting
Ecosystem – Application Developers	160,000,000	1 month cliff after TGE, and then 4-year linear vesting
Ecosystem - General	100,000,000	1 month cliff after TGE, and then 4-year linear vesting

*This is a draft allocation plan only, subject to changes

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