Zama’s $ZAMA Token Debuts With $121M Shielded, Proving FHE at Ethereum Mainnet Scale

Zama has officially listed and opened trading for the $ZAMA token, marking what the company calls the first production-scale use of Fully Homomorphic Encryption on the Ethereum mainnet and a decisive step toward ending the long-standing “privacy penalty” in decentralized finance. The launch was accompanied by a public sealed-bid Dutch auction that, according to Zama, proved that confidentiality and open access can coexist in an onchain market.

The auction, run from January 21 to 25, drew more than 11,000 unique bidders and shielded over $121 million in value, a figure the project is framing as the inaugural measurement of onchain confidentiality. Where Total Value Locked has long been the shorthand for DeFi activity, Zama is introducing Total Value Shielded, or TVS, to capture how much economic value is being actively kept private through encrypted computation. In Zama’s telling, TVS is a way to quantify the shift from privacy as an optional feature to confidentiality as a systemic property of blockchain markets.

Until now, many privacy-preserving efforts in crypto relied on off-chain workarounds: whitelisted rounds, negotiated allocations, private data rooms and the like. Those approaches protect participant confidentiality but erect barriers to open, global participation. Zama’s sealed bid Dutch auction aims to create a middle ground: allocation logic remains publicly verifiable on-chain while individual bids, contribution sizes and wallet linkages stay encrypted. The result, the team says, is an open market that doesn’t force participants to reveal sensitive financial information in order to take part.

“For years, the industry has treated confidentiality and transparency as a trade-off. We built Zama to prove that’s a false dichotomy,” said Rand Hindi, commenting on the results of the auction. The final day of the sale reportedly became the most-used application on Ethereum by transaction volume, a usage milestone Zama points to as evidence that encrypted computation can scale without sacrificing auditability.

Zama Sets New Privacy Benchmark

Central to Zama’s vision is the idea that confidentiality should be delivered as infrastructure, not as a single app. The company positions itself as a chain-agnostic confidentiality layer, offering primitives for encrypted computation and confidential state that other protocols and developers can build on. In this model, TVS grows organically as an increasing share of economic activity across chains and applications is processed under encryption, rather than because Zama itself controls demand.

Zama also tied the TVS metric and sealed bid auctions to a broader goal it calls HTTPZ, a play on web encryption standards: just as HTTPS made encryption the default for web traffic, HTTPZ aims to make encrypted computation the default for onchain applications. If adopted widely, the company argues, the approach would make assets harder to surveil and applications harder to exploit while preserving the open, permissionless properties that have driven blockchain innovation.

The $ZAMA token is now listed on major cryptocurrency exchanges, the company confirmed. Zama describes itself as an open-source cryptography firm focused on bringing state-of-the-art FHE solutions to blockchain applications. Founded by Pascal Paillier and Rand Hindi, Zama says it hosts the largest research team in homomorphic encryption.

Zama aims to enable everything from confidential finance to privacy-preserving Web3 and network states. Whether TVS will catch on as a mainstream metric remains to be seen, but the auction’s participation numbers and encrypted-dollar totals will likely become an early benchmark for projects that want to make privacy a default rather than an exception.