DEX Zeta Markets on Solana launches native token ZEX, starting airdrop distribution

Zeta Markets, a decentralized exchange (DEX) operating on Solana and specializing in derivatives trading, has launched its native token and opened an airdrop claim including 100 million ZEX.

According to a statement, the airdrop is designed to reward early users and encourage long-term participation in the protocol.

Zeta Markets founder, Tristan Frizza, said in April that the token code would be 'Z', but later changed it to ZEX.

The airdrop includes 10% of the total supply of 1 billion ZEX, 8% of which is reserved for Zeta traders in Phase 1. Early stakers qualifying for the remaining 2% in Phase 2 of the airdrop will be distributed 28 days after the corresponding token creation event based on the locked token amount and selected staking duration. The team stated that eligible users have 90 days to claim their airdrop allocation.

The initial airdrop was based on users' "Z-Score", a scoring system on the related trading platform, taken on June 7. In addition, there was a community allocation, exclusively for members of Zeta's ecosystem partners who participated in the Zeta community airdrop competition.

Frizza stated in a statement:

At Zeta Markets, our goal is to create an optimized trading platform that combines speed and convenience on par with transparent and secure DeFi platforms. The launch of ZEX marks an important milestone in this journey, empowering the community with decision-making power while driving long-term development in the protocol by adjusting the interests of various stakeholders.

Avichal Garg, Managing Partner at Zeta-backer Electric Capital added:

"Although no airdrop is perfect, very few community token distribution activities have been thoroughly researched or carefully designed like the Zeta Markets token creation event. This event illustrates a well-structured approach to rewarding loyal users and sets a new standard for community communication."

Token What is ZEX?

ZEX delegates governance, staking, and incentives on Zeta. The token utilizes a vote-locking mechanism - a system pioneered by Curve Finance on Ethereum, where holders lock their tokens for a certain period of time to gain voting rights, incentivizing long-term commitment to the project.

According to the team, ZEX also serves as the original gas token and incentive mechanism for Zeta X, Zeta's "DeFi Layer 2" on Solana. Zeta X is designed to achieve on-chain performance similar to centralized exchanges, with the mainnet expected in Q1/2025.

Over 30% of ZEX supply is allocated to ongoing trading incentives, distributed to Zeta traders at the end of each epoch, every 28 days. The team said that the 'Genesis Epoch' will run until July 25, with 8 million ZEX trading rewards.

Founded in 2021, Zeta is one of the largest derivatives exchanges on Solana, with a total locked value of $16.8 million, according to DeFiLlama data. They claim to have generated a trading volume of over $10 billion with more than 125,000 monthly active users and aim to become the leading decentralized exchange for perpetual contracts on the Solana blockchain.

Source: DeFiLlama

In May, Zeta Markets announced that it had raised a $5 million strategic funding round led by Electric Capital. Digital Asset Capital Management, Selini Capital, and Airtree Ventures also participated in this round along with angel investors such as Anatoly Ykovenko from Solana, Mert Mumtaz from Helius, Richard Wu from Tensor, Genia Mikhalchenko from Pyth, JMR Luna from Wintermute, and Nom from Bonk.

The funding round comes nearly 3.5 years after raising $8.5 million led by Jump Capital in December 2021, bringing Zeta's total funding to $13.5 million.

Frizza previously stated that Zeta's venture investors own approximately 17.5% of the total ZEX supply, and added that their tokens have a vesting* period of 3 years after launch, with unlocking starting after 1 year.

*Vesting: The process of holding, locking and releasing tokens to create leverage to enter the market.