ZIGCOIN (ZIG) Tokenomics

ZIGChain’s token economics are structured around a modular Cosmos SDK-based architecture, with a focus on sustainable issuance, robust allocation, utility-driven incentives, and transparent locking/unlocking mechanisms. Below is a comprehensive breakdown based on available documentation and technical references.

Issuance Mechanism

• Mint Module: ZIGChain uses the Cosmos SDK’s Mint module to regulate the issuance of ZIG tokens. This ensures a sustainable token economy through controlled inflation and supply management.
• Proof-of-Stake (PoS): New tokens are issued as staking rewards to validators and delegators, incentivizing network security and participation.

Allocation Mechanism

The Distribution module manages the allocation of staking rewards and maintains a community pool for ecosystem development. While specific percentages for ZIGChain’s genesis allocation are not detailed in the available documentation, the Cosmos SDK standard typically includes allocations for:

• Validators and Delegators (staking rewards)
• Community Pool (ecosystem development)
• Team and Advisors
• Early Backers/Investors
• Foundation

Custom Modules:

• Factory: Enables creation and management of custom tokens.
• DEX: Supports on-chain swaps and liquidity pools.
• Wealth Management Engine: Allows tokenization of investment strategies, distributing returns and risks among participants.

Usage and Incentive Mechanism

• Staking: ZIG tokens are staked by validators and delegators to secure the network and earn rewards.
• Governance: Token holders can propose and vote on network changes, ensuring decentralized decision-making.
• Transaction Fees: ZIG tokens are used to pay network transaction fees.
• Profit Sharing: The Wealth Management Engine enables users to participate in tokenized investment strategies, sharing in both profits and risks.
• Ecosystem Participation: Custom tokens and DEX modules incentivize liquidity provision and protocol engagement.

Locking Mechanism

• Staking Lock: Tokens staked by validators and delegators are locked for a period, securing the network and aligning incentives.
• Slashing: Misconduct by validators (e.g., double-signing, downtime) results in slashing of locked tokens, enforcing network security.
• Vesting (Implied): While explicit vesting schedules are not detailed, Cosmos SDK-based projects typically implement vesting for team, advisors, and early backers to ensure long-term alignment.

Unlocking Time

• Staking Unlock: Tokens become available for withdrawal after an unbonding period, as defined by network parameters.
• Vesting Unlock: Team and early backer allocations are usually subject to linear or cliff vesting, gradually unlocking over a multi-year period (standard in Cosmos SDK projects, but specific ZIGChain schedules are not detailed in the available documentation).

Summary Table

Technical References

• ZIGChain Modules Documentation
• Cosmos SDK - Modules

Limitations

• No explicit allocation percentages, vesting schedules, or unlock timelines for ZIGChain were found in the available documentation. The above reflects the standard Cosmos SDK approach and ZIGChain’s documented modules and mechanisms.
• For the most current and detailed tokenomics, consult the official ZIGChain documentation or governance proposals.

In summary: ZIGChain’s token economics leverage Cosmos SDK modules for sustainable issuance, decentralized allocation, and robust incentive mechanisms, with security and governance at the core. The architecture supports both network security and ecosystem growth, though specific allocation and vesting details should be confirmed with official sources as they become available.