ZAMA Launches Native Token and Privacy Metric TVS on Ethereum

• Zama launched its native ZAMA token on Ethereum, encrypting over $121 million in value during a public auction with more than 11,000 participants.
• The auction introduced the Total Value Shielded (TVS) metric, which measures the amount of economic value processed in encrypted form on-chain.
• This event marked the first production-scale use of Fully Homomorphic Encryption (FHE) on the Ethereum mainnet, demonstrating that privacy and transparency can coexist in blockchain systems.

Zama's token launch represents a milestone in integrating advanced cryptography into public blockchain infrastructure. The use of FHE allows encrypted data to be processed directly on the blockchain without decryption, enabling private transactions and smart contracts while maintaining public verification of rules. The auction involved a sealed-bid Dutch model and was executed on Ethereum using CoinList, with over 11,000 wallets participating and demand exceeding supply by 218%.

The launch of ZAMA is significant for the blockchain ecosystem, as it introduces a new infrastructure for privacy-focused applications. Zama aims to make encrypted computation a standard feature of blockchain applications, similar to how HTTPS became the standard for web traffic. The ZAMA token is now listed on major exchanges including Coinbase and Binance, and is used for protocol fees and staking.

How does Zama's FHE technology improve blockchain privacy?

Zama's use of FHE enables encrypted computation on public blockchains, resolving the tension between transparency and privacy. FHE allows data to be computed in its encrypted form without needing to be decrypted, ensuring that individual data remains private while maintaining public verification of smart contract execution. This breakthrough is particularly valuable for applications like private stablecoins, secure AI, and encrypted smart contracts.

What is the significance of the Total Value Shielded (TVS) metric?

The TVS metric is designed to measure the amount of economic value processed in encrypted form on-chain at any given time. It serves as a privacy-focused counterpart to DeFi's Total Value Locked (TVL), shifting the focus from idle capital to value actively handled without public exposure. The TVS metric is seen as a key indicator of the effectiveness of Zama's privacy infrastructure, providing a quantifiable way to assess the value being shielded within the network.

How might Zama's approach influence future blockchain development?

Zama's model challenges traditional assumptions that privacy and transparency are mutually exclusive in blockchain systems. By demonstrating that public crypto markets can support privacy while remaining open and verifiable, Zama is pushing the boundaries of what is possible with blockchain infrastructure. The company's vision is to make encrypted computation a standard feature of blockchain applications, similar to how HTTPS became standard for web traffic. Zama also aims to provide core infrastructure tools for other teams to integrate encrypted computation across different blockchains, promoting broader adoption and standardization.