Zama Launches Token Sale: Three-Phase Auction Design with a $55 Million Base Price

Privacy Policy Zama announces the launch of on-chain token sale, with a fully diluted valuation (FDV) floor price set at $55 million, and 12% of its total supply of 11 billion tokens will be distributed. The sale adopts a sealed bid Dutch auction structure, conducted in three phases, starting with community priority this week and concluding in early February. This marks an important milestone for Zama after the KYC certification controversy and signifies the project’s official entry into the fundraising stage.

Interpretation of the Three-Phase Sale Mechanism

Zama’s token sale design reflects a clear layered strategy. According to CEO Rand Hindi, the 12% token allocation follows this schedule:

What is the core logic behind this design? First, the 2% community sale targets NFT holders, serving as a direct reward to early supporters and a key step in building community consensus. Second, the 8% main auction uses a sealed bid Dutch auction mechanism, which can discover the true market price through bidding, avoiding issues like supply shortages or unsold tokens at fixed prices. Lastly, the 2% tail-end sale is conducted at the clearing price via auction, ensuring all tokens are allocated.

Pricing Strategy and Market Expectations

The token’s floor price of $0.005 and the FDV of $55 million are worth noting. Based on this floor price, the implied market valuation is quite clear. This pricing level is neither excessively high nor undervalued, respecting early participants.

Market feedback indicates high expectations for Zama. Exchanges have already begun coordinated efforts; WEEX announced on January 13th an airdrop campaign offering 50,000 USDT to new users, including rewards for trading Zama tokens. This demonstrates the exchange’s confidence in the token’s liquidity post-listing. Additionally, futures market volatility reflects investor enthusiasm, with the token already showing a 3.8% increase in futures trading.

Participation Methods and Threshold Analysis

Zama employs a multi-channel distribution strategy, which is another highlight of this sale:

• CoinList as the main partner provides a professional auction platform and risk control
• Zama’s own auction app runs concurrently, lowering participation barriers
• NFT holders enjoy community priority, incentivizing early supporters
• The Ethereum mainnet serves as the blockchain for the sale, ensuring security and transparency

This multi-channel approach breaks traditional centralized financing bottlenecks, allowing more participants to bid directly.

Market Significance and Future Outlook

From Zama’s perspective, this token sale demonstrates its technological maturity and market recognition. Privacy computing (FHE technology) is becoming a foundational infrastructure in the crypto ecosystem, and Zama’s position in this sector has been acknowledged.

From a market standpoint, Zama’s listing could further boost attention on the privacy sector. According to some analyses, Zama is expected to become a potential project for Binance Alpha, which could mean support from major exchanges after listing.

However, it is important to note that there is a time gap between the start of the token sale and actual trading. Based on the current schedule, the main auction will take place from January 21-24, with the final sale concluding on February 2. The token’s official trading debut is likely to occur shortly after the sale ends. Investors should monitor official announcements for updates.

Summary

Zama’s three-phase sale design demonstrates the project’s meticulous approach to fundraising: community priority safeguards early supporters’ interests, the Dutch auction facilitates market price discovery, and multi-channel distribution lowers participation barriers. The $55 million FDV floor price and $0.005 token floor price set clear market expectations. Coupled with exchange coordination and community enthusiasm, liquidity after listing should not be an issue. The key is to observe the actual transaction prices during the auction, which will directly reflect the market’s true valuation of the privacy computing sector.