ZAMA Token to Sell 10% of Supply in Sealed-Bid Dutch Auction on Ethereum Using Fully Homomorphic Encryption for Bid Privacy

COINOTAG News reports that Zama, the fully homomorphic encryption network, has announced a strategic sale of 10% of its total ZAMA supply via a sealed-bid Dutch auction on Ethereum. Leveraging FHE to preserve bid privacy, the structure aims to prevent bot sniping and gas wars while enabling true price discovery.

Participants will bid from January 12 to January 15, with distribution set for January 20. The tokens unlock immediately after the auction to ensure fair distribution and transparent price discovery, eliminating bot advantage and reducing gas-related frictions, per the report.

As the utility token for the Zama protocol, ZAMA is used to cover encryption and decryption fees, to stake or delegate to FHE nodes, and to bolster network security. The project cites a year-end mainnet launch, underscoring anticipated token utility and scalable cryptographic operations.