ZERA Network Update: DEX, ACE, Tooling, Governance

Overview

This proposal outlines a comprehensive set of completed audits, protocol updates, infrastructure improvements, fee adjustments, and governance enhancements designed to strengthen the ZERA Network's security, performance, usability, and long-term sustainability. The scope includes but is not limited to audited bridge infrastructure, a new decentralized exchange, deep integration of the ACE system, significant network-level smart contract upgrades, fee restructuring, SDK improvements, and governance evolution.

All changes described herein are intended to be enacted through ZERA's autonomous, governance-driven execution framework.

1. Security Audits and Infrastructure Validation

1.1 Solidproof Network Audit

A full Solidproof audit of the ZERA Network has been completed.

• The audit report is provided.

• The audited reference repository is included.

SolidProof ZERA Network Audit

Latest Code Version

1.2 Solidproof Bridge Audit

A full Solidproof audit of the ZERA Bridge has also been completed.

• The audit report is provided.

• The audited reference repository is included.

These audits validate the current security posture of both the base network and cross-chain infrastructure prior to further expansion.

Solana Smart Contract Audit

Latest Code Version (Solana)

ZERA Smart Contract Audit

Latest Code Version (ZERA)

Both audits received the maximum code score of 80/100 (as the remaining 20 points are only possible with team KYC of which ZERA does not satisfy).

2. Bridge Updates (Code only)

Note: Deployment must occur via proper governance channels in the future.

2.1 Bridge ZERA Contract Updated

The ZERA-side bridge smart contract code has been updated to reflect the audited design and improvements.

2.2 Bridge Solana Contract Code Updated

The Solana-side bridge smart contract code has been updated accordingly to maintain compatibility, security, and correctness.

2.3 Bridge Guardian Code Update

Various updates + compatibility improvements.

3. ZERA Decentralized Exchange (DEX)

A native ZERA DEX is part of this proposal.

3.1 Treasury Fee Allocation

• 12.5% of all DEX fees are allocated directly to the ZERA Treasury, reinforcing long-term protocol sustainability and aligning network activity with network support.

4. ACE System Integration into the DEX

The Authorized Currency Equivalent (ACE) system deeply integrated into the ZERA DEX.

4.1 Advantages of ACE Integration

This integration introduces several core advantages:

• Lowering the barrier to participation for base ACE tokens.

• Allowing tokens to pay fees in their own native instrument directly, rather than requiring conversion.

• Enabling tokens to contribute to network staking in their own units, adding intrinsic utility.

• Automatic participation based on DEX pairings with ZERA, using burned liquidity as a trust and alignment mechanism.

• Tight integration between the DEX, ACE, and network staking logic.

Requirement:

• The DEX pair must be with ZERA and use a 0.25% fee tier for ACE integration eligibility.

5. Network Smart Contract Feature Upgrades

This proposal includes a major network upgrade introducing the following native smart contract features:

1. Versatility in determining whether a user or a contract pays transaction fees, configurable by contract logic.

2. Derived wallets for advanced account abstraction and composability.

3. Multi-transfer functionality for efficient batch operations.

4. Wallet existence check.

5. Smart contract existence check.

6. Ability to delegate state storage.

7. Ability to delegate state retrieval.

8. Ability to delegate state clearing.

9. Ability to pay native function fees in any ACE authorized instrument.

These features significantly expand the expressiveness, efficiency, and (optionally) safety of on-chain applications.

6. Event Subscription and Network Synchronization

6.1 Updated Subscribe System

The network's subscription system has been updated to allow reliable monitoring of emit events from smart contracts.

6.2 Network State Sync Updates

Improvements have been made to network state synchronization, enhancing reliability across nodes and clients.

6.3 Network Versioning Compatibility

Enhancements to network versioning compatibility improve upgrade coordination and long-term maintainability.

7. Governance System Enhancements

7.1 Multi-Option Governance Transactions

Multi-option proposals have been updated so that each option can have its own unique associated transaction set.

7.2 Proposer Cancellation Rights

The proposer wallet now has the ability to:

• Cancel a created proposal.

• Cause the proposal to immediately fail, preventing unintended execution.

These changes improve governance flexibility, safety, and proposal lifecycle control.

8. Address Structure Additions

8.1 Removal of Mandatory Hashing in Addresses

The requirement for a hash in an address is removed but still available.

• This improves simplicity and efficiency.

• A new wallet type may exclude hashing, allowing the address to be the base58 representation of the public key directly.

9. Network Fee Restructuring

To promote network usage, network fees are being significantly reduced. To start, we propose updating the most used transaction types: vote, transfer, smart contract execute. Future updates can be accomplished seamlessly via governance proposal.

9.1 Base Wallet Fee Reduction

• Current default transfer fee: ~$0.07

• New target fee for base wallets (no hashing): ~$0.004

• Approximate reduction: 95%

9.2 Non-ZERA Fee Instrument Multiplier

• Fees paid in instruments other than ZERA are charged at 10x the ZERA fee.

• Example:

  • $0.004 -> $0.04x

• Approximate reduction: 45%

9.3 Anti-Abuse Measure for Token Proliferation

• The first time a wallet receives a new token, an additional $0.20 network fee is charged. For example (assuming fees paid in ZERA), the first transfer of a specific token to a wallet may target $0.20004, while subsequent transactions target $0.0004.

• This measure combats space and state complexity abuse while keeping the vast majority of transactions inexpensive.

10. ZERA SDK Enhancements

Significant updates have been made to the ZERA SDK to improve:

• Cross-platform compatibility.

• Better support for multiple environments, including but not limited to Node.js and React Native.

• Bridge support for all of ZERA, Solana, and Guardians.

• ZERA DEX support.

• Expanded feature sets & other updates for developers building on ZERA.

The SDK source can be found here. It can be installed via npm at @zera-os/zera.js

11. Staking Voting Multiplier Adjustment

A voting multiplier is added to staking based on lock duration:

This provides additional staking utility and incentivizes long-term participation within the ecosystem.

12. Separate, Non-Contingent Open-Source Initiative

Separate from this proposal and not contingent upon its success:

• The codebases for ZPay and explorer.zera.vision will be open-sourced.

• This allows developers to study and reuse the implementation of:

  • First public ZERA wallet application.

  • First public ZERA explorer.

This initiative is independent and does not require governance approval tied to this proposal.

ZPay Repository

Explorer Repository

13. Governance Transactions

Upon successful approval of this proposal:

• A number of mint transactions totaling 13,500,000 ZERA shall be executed.

All mints will execute autonomously via governance in accordance with ZERA's decentralized execution model.

Conclusion

This proposal represents a substantial evolution of the ZERA Network across security, infrastructure, developer tooling, economic policy, and governance mechanics. Collectively, these changes aim to:

• Strengthen protocol security and auditability.

• Expand utility through ACE and DEX integration.

• Improve developer and user experience.

• Reduce costs while protecting network integrity.

• Enhance governance precision and autonomy.

As with all ZERA governance actions, approval and execution remain entirely in the hands of the community.