Zeta Markets’ Native Token: Catalyzing Incentive Competition on Solana


Derivatives decentralized exchange (DEX) Zeta Markets recently unveiled the whitepaper for their governance token Z on April 18. This token introduces a vote escrow (ve) model, with 30% of its total supply allocated for liquidity provider incentives. This development has the potential to ignite a competitive landscape dubbed the ‘Ve Wars’ on Solana, a prospect actively monitored by Zeta Markets, as confirmed by the protocol to Crypto Briefing.

Incentivizing Participation

The primary objective behind Zeta Markets’ governance token Z is to incentivize protocols to acquire Z tokens and lock them, thereby unlocking additional platform incentives. Holding Z tokens grants protocols voting power, enabling them to influence and enhance user incentives through amplified rewards on the Zeta Markets platform.

The Vote Escrow Model

The vote escrow model operates by endowing token stakers with voting power based on the duration of their token lock. This accumulated voting power can then be leveraged to amplify rewards in platform pools. Consequently, the longer a user stakes their funds, the greater their voting power becomes.

Similar Models in the Crypto Space

The ‘Ve Wars’ concept draws parallels to existing models in the crypto space, such as Curve Finance and its CRV token. In these scenarios, various applications vie for the accumulation of the asset, aiming to augment rewards on Curve pools using their respective native cryptocurrencies.

Benefits for Users