KEY TAKEAWAYS
- Zero1 Labs unveils a new vision for the $DEAI token, emphasizing enhanced functionality and sustainability.
- The $DEAI token will serve as the native currency for the Cypher network, facilitating transactions and governance.
- Four major changes to the $DEAI token standard include its use as a gas token and a revised vesting structure.
- Cypher Nodes will play a crucial role in network security and scalability, with incentives for validators.
Zero1 Labs has announced a new vision for its $DEAI token, focusing on enhanced functionality, increased rewards, and sustainability over the next decade. Central to this evolution is the Cypher FHE-EVM Layer, which will serve as the foundational architecture for the next generation of the Decentralized Artificial Intelligence (DeAI) ecosystem. The announcement was made here.
$DEAI as the Cypher Network Currency
The $DEAI token will play a crucial role in this vision through several initiatives. It will serve as the native currency for Cypher, facilitating transactions, staking, and governance within a Proof-of-Stake (POS) ecosystem. Additionally, $DEAI will function as a gas token for the Cypher FHE-EVM Layer, supporting confidential AI processing through privacy-preserving, encrypted computations.
To encourage network participation, $DEAI will provide staking rewards, validator incentives, and governance privileges. The Cypher FHE-EVM Layer integrates Fully Homomorphic Encryption (FHE) with Ethereum Virtual Machine (EVM) compatibility, allowing for privacy-preserving AI computation by enabling encrypted processing at all stages.
Four Major Changes to the $DEAI Token Standard
Zero1 Labs is implementing four significant changes to the $DEAI token standard. These include using $DEAI as a gas token for the Cypher Network, as an access point for Cypher Nodes, as a deflationary network token standard, and a revised vesting structure.
The $DEAI token will remain the core economic unit of Zero1 Labs on Ethereum, powering a POS ecosystem with a deflationary twist. It will be used for staking, governance, and transaction fees, ensuring the security, scalability, and decentralization of the Cypher network.
Cypher Nodes and Revised Vesting
Cypher Nodes will be integral to securing, rewarding, and scaling the network. Existing $DEAI holders can become validators, joining a network designed for privacy and scalability. Operators can stake $DEAI to secure the network, while validators can validate blocks and process transactions, earning $DEAI as incentives.
Node operators will stake tokens as collateral to participate in block validation, ensuring accountability and deterring malicious behavior. Nodes will earn tokens as rewards for validating transactions and proposing new blocks. They will also collect transaction fees paid in tokens by network users as compensation for processing and validating transactions.
Under the revised vesting plan, additional tranches of tokens will not begin vesting until the Cypher network is launched. This aligns with a prior governance vote, which highlighted that only 1.2-1.5% of tokens will enter the supply until June 20, 2025.
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