Comment on page
ZCX is the native utility token powering the Unizen platform. It's an ERC-20 token minted on the Ethereum Network.
The utility of ZCX currently includes the following:
- Staking on Unizen Earn
- Pro Membership Purchases
- Profit Return on Unizen Trade
With every trade executed on Unizen Trade or through a Unizen SDK integration, a portion of the trade's USD equivalent will be set aside for a scheduled token burn. In Unizen's terminology, these reserved ZCX assets are referred to as "earmarked" ZCX.
The token burn process is directly linked to the trading volume. Specifically, Unizen will earmark 0.5% of the value of every single-chain trade and 1% of any cross-chain trade.
To put it simply, if Unizen achieves a daily trade volume of $1 million in single-chain trades, then $5,000 worth of circulating ZCX tokens will be scheduled for burning each day.
It's important to note that the timing of these token burns is entirely randomized to ensure compliance with regulatory requirements, hence the use of the term "earmarked."
The buy-back-burn is our secondary mechanism of burning, beyond even the burn reserve pool, whereby we utilize fees from our total, aggregate SDK integrations to buy-back and then burn ZCX off the open market, from willing sellers. This takes us from a strong deflationary project to one which we class as having hyper-deflationary tokenomics. Herein, we are following in the footsteps of BTC itself as our foundation and building upon that with the buy-back-burn mechanism.
Staking on Unizen Earn
The ZCX token is used in the Unizen Earn program, a multi-asset rewards program. Users stake their ZCX on the platform to earn a plethora of chain-agnostic rewards in up-and-coming projects that are sourced through ZenX Labs, Unizen’s full-service incubator. The more ZCX that are staked, the higher is the level of rewards a user secures.
Pro Membership Purchases
By spending $50 worth of ZCX, users acquire Pro membership on the Unizen platform. Pro membership unlocks the pro trading features that are part of Unizen's UI/UX. The ZCX are subsequently sent to a burn address, which is one element of the token’s hyper-deflationary design.
Token holders and stakers receive a profit return based on the quantity of ZCX tokens they hold and their chosen method of storage—either in a wallet or staked on Unizen Earn. Stakers receive a higher percentage compared to those who only hold tokens in a wallet. The profit return calculation is dependent on the number of ZCX tokens held in the user's address or staked on Unizen Earn from which the trade is initiated.
The profit return is generated from positive slippage during the trade. By default, 50% of this profit is allocated to Unizen, and the remaining 50% is granted to the end-user conducting the trade. This ensures that the end user receives a higher percentage of Unizen's profit.
Profit Return Distribution Examples:
These examples illustrate the varying profit returns based on token quantities and the distinction between holding tokens in a wallet versus staking them on Unizen Earn.