Zama fee burn economics: $3.5M per TPS per year
Quote136 words
Zama burns 100% of fee revenue, tying deflation to usage. Under the initial fee model 1 TPS on a host chain yields $3.5M a year and 300 TPS yields $1B, with hardware acceleration as the scaling path.
Key claims
1 TPS on a host chain equals $3.5M fee revenue per year
300 TPS equals $1B per year
100% of fees are burned
Zama will burn 100% of generated fee revenue to create deflationary pressure on $ZAMA, and create a powerful value accrual mechanism for token holders that is directly tied to protocol usage.
Given the initial fee model, that means:
- 1 TPS (on a given host chain*)= $3.5M in fee revenue / year
- 300 TPS = $1B in fee revenue / year
* ) Zama is chain-agnostic and will support multiple chains, starting with Ethereum and other EVM chains towards end of year.
FHE allows to perform computation directly on fully encrypted data. It will be a crucial enabler for many use cases, from confidential (institutional) DeFi, to private AI inference, encrypted cloud services, and more.
While performance constrains currently still exist, Zama has a clear roadmap to scale leveraging hardware acceleration.
Definitely an interesting one.
QUOTING @zerokn0wledge_
$ZAMA will be absolutely huge: - @zama is a cross-chain confidentiality layer - enabling fully homomorphic encryption (FHE) on any L1/L2 - combines FHE (computation), MPC (key mgmt) & ZK (input verification) - dedicated network of FHE "co-processors" - intensive FHE computation
$ZAMA will be absolutely huge: - @zama is a cross-chain confidentiality layer - enabling fully homomorphic encryption (FHE) on any L1/L2 - combines FHE (computation), MPC (key mgmt) & ZK (input verification) - dedicated network of FHE "co-processors" - intensive FHE computation
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What came next · since 27 Jul 2025
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Zero has written 3 more pieces on Zama and $ZAMA since this one.
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