The mainnet staking feature for the privacy computing protocol Zama officially went live on January 19, 2026. This milestone allows key participants in its ecosystem—including 5 FHE (Fully Homomorphic Encryption) nodes and 13 KMS (Key Management Service) nodes, totaling 18 operators—to begin staking ZAMA tokens to help secure the network and earn rewards.
For users who participated in the public auction from January 12 to 15, staking eligibility will begin on February 2, following token claims starting January 20.
01 Behind the Scenes: How FHE and KMS Work Together
At its core, the Zama protocol aims to solve blockchain’s "transparency paradox": while public verifiability builds trust, it also limits business applications that require data privacy.
Rather than building a new blockchain from scratch, Zama acts as a modular privacy layer that integrates with existing public chains like Ethereum.
This technical solution relies on two key roles: FHE nodes and KMS nodes.
FHE nodes are responsible for performing fully homomorphic encryption computations. Often called the "holy grail" of cryptography, this technology allows computations to be performed directly on encrypted data without decryption, ensuring data privacy throughout the process. KMS nodes, on the other hand, run threshold decryption services, ensuring that only authorized users can decrypt the final computation results.
Currently, 18 operators form the backbone of the network, including Zama itself and well-known institutions such as Figment, Fireblocks, and Ledger.
02 Staking Economics: Reward Distribution and Token Model
Zama uses a proof-of-stake mechanism to ensure operators fulfill their responsibilities. Operators must stake ZAMA tokens to participate in protocol operations and earn rewards.
The reward distribution mechanism is carefully designed to balance incentives among participants. The total reward pool is first split by role: FHE nodes receive 40%, while KMS nodes receive 60%. This ratio may be adjusted in the future based on the actual infrastructure costs of each node type.
Within each role, rewards are distributed proportionally to each operator based on the square root of their staked amount. This model is intended to limit centralization and encourage broader participation and decentralization.
Regular token holders can participate in staking by delegating their ZAMA tokens to an operator of their choice and sharing in the rewards after operator commissions are deducted. Upon staking, users receive a liquidity token representing their share of the pool. Unstaking requires a 7-day unlock period before tokens can be withdrawn.
03 Token Utility: Dual-Cycle Model and Value Capture
The ZAMA token serves two primary functions within the protocol: paying fees and staking.
When users perform encryption or decryption operations, they pay protocol fees denominated in ZAMA. All of these tokens are burned, creating a deflationary pressure.
On the other hand, the protocol mints new ZAMA tokens to reward operators who help secure the network. The initial annual inflation rate is set at 5%, adjustable through governance. This burn-and-mint mechanism forms the dual-cycle economic model of Zama.
Protocol fees are settled in ZAMA, but their value is pegged to the US dollar and updated via oracles. This provides cost predictability for users and developers, shielding them from token price volatility.
04 Market and Outlook: From Privacy Stablecoins to Expanding RWA Potential
With the Zama mainnet launch, a privacy stablecoin is the first real-world application. On-chain data shows that the privacy version of cUSDT has completed its first transfer, marking the transition of fully homomorphic encryption from theoretical validation to practical use.
This breakthrough opens up new possibilities for the entire DeFi and RWA (Real World Assets) sectors. Institutions can issue and trade stocks, bonds, and other real-world assets on public blockchains while keeping investor identities and trading activity confidential.
The Zama team is led by world-class cryptography experts. Co-founder and CTO Pascal Paillier is even the inventor of the widely used Paillier homomorphic encryption scheme. The team’s strong academic and engineering background provides a solid foundation for the long-term development of its technology roadmap.
05 How to Participate: A Guide for Gate Users
As a leading global cryptocurrency exchange, Gate provides users with an easy way to access and participate in cutting-edge projects like Zama. Here’s a step-by-step guide for Gate users:
Step 1: Acquire ZAMA Tokens
You can purchase ZAMA tokens directly on the Gate exchange trading platform. Gate offers a secure and liquid trading environment, making it easy to build your position quickly. As of January 20, 2026, the latest price of ZAMA can be found on Gate’s official website or in the real-time market section of the app.
Step 2: Choose Your Staking Delegate
Visit the official Zama staking portal (staking.zama.org) and connect your crypto wallet. There, you can review real-time data for all 18 operators, including total staked amounts, historical performance, and commission rates.
Choose one or more operators to delegate your tokens to based on your risk appetite and return expectations.
Step 3: Manage Your Staked Assets
After delegating, you’ll receive corresponding liquid staking tokens. You can claim staking rewards at any time, but keep in mind that if you decide to unstake, your principal will be subject to a 7-day unlock period before withdrawal.
Looking Ahead
As Zama’s staking feature goes live, the world’s first privacy stablecoin based on fully homomorphic encryption, cUSDT, has successfully completed an on-chain transfer. This breakthrough means users can transfer value on public ledgers like Ethereum, while transaction amounts and balances remain completely confidential to everyone except the transacting parties.
Looking forward, Zama’s roadmap shows its privacy layer expanding to more blockchains such as Solana. A universal blockchain network supporting programmable privacy is taking shape—one that no longer forces users to choose between transparency and privacy.
