Zama to Launch First-Ever Private Token Auction on Live Blockchain

Zama, a blockchain and cryptography firm, has revealed plans to hold a public auction for its native $ZAMA token, offering 10% of the total supply through a sealed-bid Dutch auction on Ethereum.

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Key Points

Zama is holding its first public auction for $ZAMA tokens using a sealed-bid Dutch auction with Fully Homomorphic Encryption for confidentiality.
The auction ensures fair distribution, prevents bots and gas wars, and allows immediate token access post-auction.
$ZAMA powers the Zama Protocol, enabling encrypted transactions, staking, delegation, and supporting secure FHE operations.

Zama announced on December 1 via X that it will leverage its own Zama Protocol to keep auction bids confidential using Fully Homomorphic Encryption (FHE). This approach is designed to ensure a fair token distribution, prevent bot activity and gas wars, and allow tokens to be unlocked immediately after the auction.

Announcing the Zama Public Auction.

We’re selling 10% of the $ZAMA supply via a sealed-bid Dutch auction on Ethereum, using the Zama Protocol itself to keep bids confidential with FHE.

Why this matters:

◼️ Fair distribution & real price discovery
◼️ No bot sniping or gas wars… pic.twitter.com/wno7qsG1r1
— Zama (@zama) December 1, 2025

The Zama token auction is scheduled to begin on January 12 and conclude on January 15, with successful participants able to claim their tokens starting January 20.

The ZAMA token is the native utility token of the Zama Protocol, designed to power a next-generation confidentiality layer for existing blockchain networks. It plays a central role in the ecosystem, allowing users to pay for encryption and decryption services while interacting with FHE technology.

Beyond transactional use, ZAMA can be staked or delegated to network operators, helping secure the protocol’s FHE coprocessors and key management system (KMS) nodes. The token also facilitates fair participation in network operations, ensuring transparent and efficient validation of confidential computations.

The ZAMA token is positioned as a key enabler of privacy-focused, on-chain applications, bridging secure computation with broader blockchain adoption.

As the Zama Protocol prepares for its mainnet launch and token auction, the spotlight is on how privacy and security will shape the next phase of blockchain innovation. ZAMA represents more than just a token, it’s a step toward making confidential transactions and computations practical for developers, institutions, and everyday users.

By leveraging advanced encryption technology, Zama aims to address a longstanding challenge in the blockchain space: how to maintain transparency and verifiability while keeping sensitive data protected.

The upcoming auction will provide early participants a chance to engage with the ecosystem from the ground up, testing new mechanisms for fair token distribution and decentralized participation. As blockchain adoption grows, projects like Zama are spotlighting the importance of combining technological sophistication with user-centric design.

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Frequently Asked Questions

Zama will conduct a sealed-bid Dutch auction on Ethereum to distribute 10% of the total $ZAMA token supply. Participants submit confidential bids, and the final clearing price is determined once all bids are evaluated. This mechanism is engineered to ensure equitable token distribution without exposing bidding strategies.

The auction leverages the Zama Protocol’s FHE capabilities to keep all bids encrypted end-to-end. This prevents competitive intelligence leaks, mitigates bot-driven manipulation, and eliminates gas war dynamics. As a result, bidders operate in a secure, confidential environment that promotes fair market formation.

The auction will open on January 12 and close on January 15. Successful bidders will be able to claim their tokens starting January 20, enabling immediate engagement with the Zama Protocol’s functionality.

$ZAMA is the native utility token used to pay for encryption, decryption, and FHE-related computational services. The token also enables staking and delegation to network operators, supporting the protocol’s FHE coprocessors and KMS nodes and ensuring secure, transparent operation.

The auction marks a pivotal milestone for deploying privacy-first blockchain applications. By combining advanced cryptography with user-centric token distribution, Zama is demonstrating how confidential computation can be integrated into mainstream blockchain workflows. This positions $ZAMA as a foundational asset for developers, enterprises, and users seeking secure, privacy-preserving on-chain interaction.

MICHAELA

Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is the official publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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