Tokenomics

The initial total supply of Zippy tokens (ZPT) at mainnet is 1 billion tokens. ZPT will have 18 digits of precision as part of the fraction. The initial circulation of ZPT is 100,000,000. We will adopt a fair launch approach to ensure that the initial distribution of tokens is fair. We will offer buy-in rewards and reward investors who hold tokens for a long time. In addition, we will use trading bot technology to manage the price of tokens and ensure a balance between multiple DEX and DeFi platforms.

	Category	% of Tokens	Number of Tokens
1	Validators	38.5%	385,000,000
2	Builders	16.5%	165,000,000
3	Incentivized Testnet and Airdrops	5%	50,000,000
4	Reserve	5%	50,000,000
5	Ecosystem Grants and Incentives	6%	60,000,000
6	Liquidity and Operations	5%	50,000,000
7	Investors and Early Supporters	12%	120,000,000
8	Core Contributors	12%	120,000,000

We utilize a linearly decaying block incentive reward system. For the first year after the Mainnet launch, there will be a reward of 2 ZPT per block. 70% of the reward for each block will be given to the validators, while the remaining 30% will be distributed among ZippyChain builders. The reward will be linearly discounted by 94% each year, e.g., the block reward is 1.88 ZPT in the second year after the Mainnet launch.

ZippyChain successfully launched its incentivized testnet. The Zippy DAO will conduct a pre-mining process, during which a portion of the pre-mined coins will be allocated for a special gas fee subsidy airdrop. We will use a bot to record network transaction records for this airdrop. Starting from block 0 to block 6 million, we will return the gas fees to the initiators of the transactions. If the special subsidy is fully distributed before the 6 millionth block, the subsidy will end. If not, the remaining portion will be used as a reward fund for Zippy DeFi developers. The Zippy technical team will start distributing gas fee subsidies at block 6 million and check the reward addresses to prevent witch attacks. The Zippy technical team reserves the final interpretation right of gas fee distribution.

Distribution Schedule for Core Contributors

All current core contributors are subject to a three-year lock-up schedule, excluding staking rewards if applicable, from mainnet launch that unlocks according to the following schedule:

• No ZPT available for the first twelve months.

• 1/36ths of such tokens unlock on the 13th month after mainnet launch and each month thereafter so that all such tokens are unlocked on the four-year anniversary of mainnet launch.

Distribution Schedule for Investors

All investors are subject to a three-year lock-up schedule, excluding staking rewards if applicable, from mainnet launch that unlocks according to the following schedule: 1/36ths of such tokens unlock after mainnet launch and each month thereafter so that all such tokens are unlocked on the three-year anniversary of mainnet.

Initial Distribution Schedule

• 20,000,000 ZPT will be available for airdrops after the launch of the mainnet;

• 20,000,000 ZPT will be available for reserve;

• 30,000,000 ZPT will be used for ecosystem grant program;

• 30,000,000 ZPT will be available for liquidity and operations

The rest of the tokens for the above sectors will be linearly released monthly in two years after the mainnet launch.

ZPT tokens fulfill the following essential functions within the ZippyChain ecosystem:

• Transaction Fees: Users pay gas fees for executing transactions and other operations on the network using ZPT tokens. The fees are designed to be low with the base gas fee 5*10-9 ZPT, which encourages user engagement and efficient transaction processing.

• Staking and Validation: In the Delegated Proof of Stake (DPoS) consensus mechanism employed by ZippyChain, validators stake ZPT tokens to participate in the network's consensus process. This staking not only secures the network but also allows validators to earn rewards in ZPT for their contributions.

• Governance Participation: ZPT token holders have the right to participate in governance decisions, influencing protocol upgrades and other key decisions affecting the network. This decentralized governance model empowers users and fosters a collaborative development environment.

• Facilitating On-Chain Transactions: As the native asset of ZippyChain, ZPT is used to facilitate various on-chain transactions, underpinning the entire ecosystem. This includes interactions with dApps and other functionalities inherent to blockchain technology.

Inflation/Burning Mechanisms

The base gas fee will be burned. Thus, the more transactions, the more token supply will be burned. In addition, ZippyChain foundation will burn additional supply if the market condition is adverse.

Reward and Incentive Mechanisms for Incentivized Testnet

We provide diverse staking reward mechanisms to incentivize user participation:

• Gas fee reward incentives: We set double gas fee rewards to encourage users to conduct transactions frequently.

• Staking rewards: We set the total staking reward to 9 million; Minimum staking amount: 1000; Maximum total staking reward: 75,000; Daily staking reward: up to 1%.

• The native tokens of the incentivized testnet will be bridged to the Mainnet on a one-to-one basis with a certain lockup period.

Token Issuance Plan

ZippyChain will leverage decentralized exchanges (IDOs) and centralized exchanges (IEOs) for token sales within 6 months, i.e., before June 30, 2025:

• IDO: Tokens are offered on decentralized exchanges where users can trade them immediately after purchase. This method often involves liquidity pools and automated market makers (AMMs) for price discovery.

• IEO: Conducted through centralized exchanges, IEOs provide a layer of trust as exchanges vet projects before listing them. This can enhance visibility and provide immediate liquidity.