Pre-migration documentation. This site reflects the pre-migration state of the protocol. It’s mostly current, but a few edges may not match ZERA at launch. We’re finalizing the new, detailed ZERA docs now. Thanks for your patience.
Economic Integration & Value Flow
How ZERA tokens create economic value through multi‑asset protocol usage and adoption
ZERA tokens create economic value through automatic utility consumption. Every privacy activation, offline transaction, and cross‑chain operation automatically burns ZERA, creating a self‑reinforcing cycle where adoption drives scarcity and value. This applies across supported assets including stablecoins, BTC, SOL, and others.
Token Consumption Process
When users make assets (stablecoins, BTC, SOL, etc.) private and enable offline transactions, the protocol automatically burns ZERA to activate these features.
// Step 1: User deposits stablecoinuser.deposit(usdc_amount)// Step 2: Protocol automatically burns ZERA to activate privacyprotocol.enablePrivacy() // Automatic burn happens// Step 3: Enable privacy featuresuser.enablePrivacy()
Privacy Activation Costs
Privacy activation automatically burns ZERA proportional to asset value:
Basic Privacy
Standard transaction privacy
0.5% of asset value
Example: $1,000 asset = $5 ZERA burned
Enhanced Privacy
Advanced anonymity features
1% of asset value
Example: $1,000 asset = $10 ZERA burned
Maximum Privacy
Complete transaction obfuscation
2% of asset value
Example: $1,000 asset = $20 ZERA burned
Computational Resource Payment
ZERA is automatically consumed during zero‑knowledge proof generation that enables private transactions.
// ZK Proof generation consumes ZERAfunction generateZKProof(transactionData) {const proofCost = calculateProofCost(transactionData)burn(proofCost)return generateProof(transactionData)}
Proof Generation Costs
Costs are proportional to transaction complexity and value:
Standard Proof
- Basic privacy proof
- 0.1% of transaction value
- Example: $1,000 = $1 ZERA burned
Advanced Proof
- Complex privacy features
- 0.3% of transaction value
- Example: $1,000 = $3 ZERA burned
Cryptographic Commitments
For offline transactions, ZERA is used to create cryptographic commitments that ensure validity and prevent double‑spending without connectivity.
// Offline transaction requires ZERA for securityfunction createOfflineTransaction(amount, recipient) {const securityDeposit = calculateSecurityDeposit(amount)burn(securityDeposit)return createCommitment(amount, recipient)}
Security Deposit Requirements
The burn requirement is a percentage of the transaction value, creating proportional deflationary pressure:
Standard Transaction
Any amount
1% of transaction value
Example: $100 USDC = $1 worth of ZERA burned
High‑Value Transaction
> $10,000
0.5% of transaction value
Example: $10,000 USDC = $50 worth of ZERA burned
Enterprise Transaction
> $100,000
0.25% of transaction value
Example: $100,000 USDC = $250 worth of ZERA burned
Multi‑Chain Privacy
As the protocol expands to multiple chains, ZERA facilitates cross‑chain privacy operations and maintains consistent guarantees across networks.
// Cross-chain privacy bridgefunction bridgeTransfer(privateAsset, targetChain) {const bridgeFee = calculateBridgeFee(targetChain)burn(bridgeFee)return bridge(privateAsset, targetChain)}
Cross‑Chain Bridge Costs
Costs vary by blockchain performance and complexity:
High‑Performance Chains
- Solana, Polygon
- 0.2% of transaction value
- Example: $1,000 = $2 ZERA burned
Traditional Chains
- Ethereum, Bitcoin
- 0.5% of transaction value
- Example: $1,000 = $5 ZERA burned
Demand Generation Cycle
ZERA demand is directly tied to protocol adoption, creating a self‑reinforcing cycle:
- Protocol Adoption: More users → more privacy activations
- Automatic Consumption: Each activation burns ZERA
- Supply Reduction: Burns create structural scarcity
- Value Appreciation: Scarcity drives price sensitivity
- Network Effects: Larger base improves privacy for all
Volume‑to‑Value Correlation
Protocol volume and token value produce predictable dynamics:
Low Volume Phase
- Gradual token burns
- Linear price appreciation
- Early adopter benefits
High Volume Phase
- Accelerated burns
- Exponential price sensitivity
- Network effect multipliers
Cross‑Chain Value Capture
Multi‑chain deployment maximizes value capture and burn opportunities:
- Aggregated Burns: Burns across chains reduce total supply
- Network Synergies: Privacy benefits scale across chains
- Liquidity Efficiency: Cross‑chain operations increase utility
- Market Expansion: Access to multiple ecosystems