Zero1 Labs (DEAI) tokenomics

Zero1 Labs is a platform focused on developing decentralized AI (DeAI) applications, utilizing its native token, $DEAI, to power its ecosystem, which includes the Cypher FHE-EVM Layer and the Keymaker Platform. The token economics are designed to align the interests of users, builders, developers, and node runners, with a strong emphasis on community engagement and decentralization.

Usage and Incentive Mechanism

The $DEAI token serves as the central hub for meta-governance and incentives within the Zero1 Labs ecosystem, primarily through the Mainframe staking platform and various community programs.

Core Utility and Staking

The primary mechanism for utility and incentives is staking $DEAI through the Mainframe platform.

• Staking Rewards: Users who stake $DEAI earn staking rewards, with Annual Percentage Yield (APY) rates varying based on the lock-up period.
  • An Open Vault allows staking with a 10% APY.
  • A 3-Month Linear Vesting option offers a 15% APY.
• Zero Construct Program (ZCP) Incentives: Stakers also receive additional incentives from the Zero Construct Program (ZCP), which are curated from top-tier DeAI projects. These ZCP incentives are estimated to range from 30% to 150% in addition to the base APY.
• Early Investor Opportunity: Staking $DEAI allows users to become early investors with the opportunity to receive early supporter incentives from ZCP projects.
• Governance: The Mainframe is the central hub for meta-governance, designed to align stakeholder interests.

Community Programs

Zero1 Labs actively uses community programs to decentralize the $DEAI token and expand its community.

• Community Program: A major initiative was announced to further decentralize $DEAI, involving over 25 prominent communities. This program offers users a chance to claim a share of a $2 million $DEAI prize pool by engaging with the community and creating content about Zero1 Labs.
• Participation: Rewards are earned by completing social tasks, such as following on X, joining Discord, and discussing $DEAI. This program kicked off on July 3, 2024, with eligibility determined by snapshots taken the day before the announcement.

Issuance and Allocation Mechanism

While specific, detailed token allocation percentages for all $DEAI categories (e.g., team, investors, ecosystem) are not explicitly provided, the overall strategy focuses on community-centric growth without the involvement of traditional Venture Capital (VC) firms.

• Community Focus: The ecosystem is described as community-centric, prioritizing inclusivity and collaboration.
• Token Listing: The $DEAI token was scheduled for listing on the LCX Exchange on Tuesday, November 26, 2024, with the trading pair $DEAI/EUR.

Locking Mechanism and Unlocking Time

The locking mechanism is tied directly to the staking options available on the Mainframe platform, designed to encourage long-term commitment and boost liquidity for the upcoming Cypher mainnet launch.

Staking Lock-up Periods

The Mainframe offers different staking vaults with associated lock-up periods and vesting schedules:

• Open Vault: Allows users to Stake/Unstake at any time. However, there is a withdrawal timeout of 10 days after initiating the unstaking process.
• 3 Months Linear Vesting: Tokens are locked for a 3-month period with linear vesting.
• 6 Months Linear Vesting: A longer lock-up option is available for 6 months with linear vesting.

The epoch, a fundamental principle of time for staking, is defined as seven days, though the announcement of the first epoch was pending.

Information regarding the specific total supply, detailed percentage allocation breakdown (beyond staking pools), and comprehensive vesting schedules for all stakeholder groups of the $DEAI token was not available.