Zama Introduces Network Staking Mechanism with DPoS Protocol

On February 2, Zama announced details about its network staking mechanism. According to BlockBeats, the Zama protocol utilizes a Delegated Proof of Stake (DPoS) system, allowing users and participants to delegate their ZAMA tokens to operators responsible for running the infrastructure. Currently, there are 18 active operators, including 13 Key Management Service (KMS) nodes and 5 Fully Homomorphic Encryption (FHE) coprocessors. Staking rewards are derived from the protocol's inflation mechanism, with an annual inflation rate set at 5% of the total ZAMA supply initially. Of these rewards, 60% are allocated to KMS operators and their delegates, while 40% go to coprocessor operators and their delegates. The distribution is based on the square root of each operator's total staked amount, meaning delegating to smaller operators yields higher returns, promoting network decentralization. Operators deduct a commission before distributing rewards to delegates, with a maximum cap of 20%. The remaining rewards are proportionally distributed among all delegates. Unstaking requires a 7-day unbinding period, although users can transfer or sell liquid staking certificates without waiting.