This proposal defines a framework relating to the ZERA Network (ZRA) and a short and long-term liquidity strategy. The primary objective is to establish a resilient market environment that allows for efficient entry and exit within the ecosystem while incentivizing long-term commitment from liquidity providers.
In any decentralized network, liquidity serves as the fundamental infrastructure for utility and ecosystem adoption. This framework is designed to provide:
Network Accessibility: Facilitating the ability for developers, validators, and users to enter and exit the ecosystem.
Protocol Stability: Encouraging a balanced ecosystem where participants can interact with the network's native token through transparent, decentralized mechanisms.
To kick off the Liquidity Pool (LP), this proposal prioritizes a multi-chain approach with an emphasis on established visibility.
Primary Liquidity (Solana DEX): A minimum of 95% of the initial capital is designated for Solana-based DEXs (pairing Wrapped ZERA with USDC).
Secondary Liquidity (Native ZERA DEX): The remaining balance (up to 5%) will be deployed on the native ZERA Network DEX (pairing ZERA with Wrapped USDC).
Phase 1 (Initial Deployment): Within 14 days of proposal maturity, an allocation of 1,000,000 - 1,250,000 ZRA and 100,000 - 125,000 USDC is designated for these pools at an initial ratio of 10 ZERA per 1 USDC (an effective starting rate of 0.10 USD). This initial liquidity will be locked for 7 years under section 3 below.
Phase 2: An additional 50,000 - 75,000 USD is earmarked for potential LP support and OTC transactions over the subsequent 6 month period at the discretion of the proposers.
Total Budgetary Requirement: To cover all initial seeding, costs, and other expenses, the total allocation for this phase is 5,100,000 ZRA.
Beyond the initial seeding, 7,000,000 ZRA is allocated toward a long-term liquidity incentive program (totalling approximately 11.5 years). This model suggests releasing 700,000 coins per period where each period has a 1.55x Day Multiplier to incentivize earlier participation while maintaining rewards over a long-term horizon.
| Period | Duration (Days) | Daily Coins Released |
|---|---|---|
| Period 1 | Days 1 to 30 | 23,333.33 |
| Period 2 | Days 31 to 76 | 15,217.39 |
| Period 3 | Days 77 to 147 | 9,859.15 |
| Period 4 | Days 148 to 257 | 6,363.64 |
| Period 5 | Days 258 to 427 | 4,117.65 |
| Period 6 | Days 428 to 690 | 2,661.60 |
| Period 7 | Days 691 to 1,097 | 1,719.90 |
| Period 8 | Days 1,098 to 1,727 | 1,111.11 |
| Period 9 | Days 1,728 to 2,703 | 717.21 |
| Period 10 | Days 2,704 to 4,215 | 462.96 |
This governance controlled smart contract will start distributing rewards within 30 days of proposal success and any liquidity provider under supported pairs can freely interact with it in a permissionless manner.
The Strategy:
The model shifts from higher initial emissions to a more gradual release schedule as the ecosystem matures. This front-loads incentives during the network's critical starting phase while allowing the reward pool remains active and sustainable for the long term.
The proposed bootstrapping program utilizes a Booster Mechanic to reward commitment over time. Under this system, rewards are not calculated solely on capital volume, but on the duration of the commitment.
Rewards are distributed based on the number of LP tokens contributed multiplied by a Duration Factor.
| Commitment (Days) | Commitment (Years) | Reward Multiplier |
|---|---|---|
| 30 Days | 0.08 | 1.00x |
| 90 Days | 0.25 | 1.16x |
| 180 Days | 0.49 | 1.40x |
| 365 Days | 1.00 | 1.67x |
| 730 Days | 2.00 | 2.01x |
| 1,095 Days | 3.00 | 2.41x |
| 1,460 Days | 4.00 | 2.89x |
| 1,825 Days | 5.00 | 3.47x |
| 2,190 Days | 6.00 | 4.17x |
| 2,555 Days | 7.00 | 5.00x |
Example: An LP contributor who locks their LP tokens for 7 years receives 5x the ZRA rewards per token compared to a contributor who chooses the 30-day minimum. This mechanism aligns the highest incentives with the network's most committed participants.
This liquidity strategy is designed for broad compatibility. These incentives and seeding operations apply to:
Native ZERA Network DEX (ZERA / Wrapped USDC)
Solana Ecosystem DEX (raydium) (Wrapped ZERA / USDC)
By maintaining presence across both native and external environments, ZERA enables an entry point for multiple ecosystems. Both pools use eligible 0.25% fee tier.
This liquidity strategy is more than a technical requirement; it is a necessary step in the evolution of the ZERA Network. By establishing liquidity pools and incentivizing both short and long-term participation, we transition from a closed network that has never had any ability to enter or exit to an open, accessible ecosystem ready for global participation.
Notably, this infrastructure aligns with the requirements of marketing groups already approved via governance, who have identified these liquidity parameters as the necessary foundation to begin their active onboarding and outreach campaigns.
By approving this proposal, the ZERA community is choosing to build a robust financial foundation that rewards loyalty, enables utility, and prepares the network for large-scale adoption.
The implementation of this proposal will be executed through a series of on-chain governance actions.
The execution of this plan requires a series of minting transactions totaling 12,100,000 ZRA which is all inclusive of initial seeding, operational costs, and long-term bootstrapping rewards to be distributed over the next approximately 11.5 years via smart contracts. These transactions shall be autonomously executed upon success of this proposal.