Zama Token Staking Portal Launches: A Detailed Explanation of Reward Distribution Rules for Two Types of Nodes

GasWrangler · 2026-01-19T17:10:10+00:00

Zama officially launched its token staking portal on January 20th, and users can start staking from February 2nd. The staking system requires operators to lock ZAMA tokens and earn rewards from different nodes based on their staking amount. Rewards for FHE and KMS nodes are 40% and 60%, respectively, and will be dynamically adjusted to accommodate infrastructure costs, ensuring the sustainability of ecosystem incentives.

GasWrangler

2026-01-19 17:10:10

Abstract generation in progress

【Blockchain Rhythm】Zama officially announced on January 20th that its token staking portal is now live. For all users who participated in the public offering, they can start staking immediately after receiving tokens from February 2nd, without waiting.

The core logic of this staking system is quite interesting—each operator must lock in ZAMA tokens to join the protocol operation, and then earn rewards based on their staked amount. How are the rewards divided? First, by node type, into two main roles: FHE nodes and KMS nodes. Then, within each role, rewards are allocated proportionally based on the square root of each operator’s staked amount.

The specific profit distribution is as follows: FHE nodes receive 40% of the total rewards, while KMS nodes take the remaining 60%. But don’t see this ratio as fixed—officially, it’s clarified that this ratio will be dynamically adjusted based on the actual infrastructure costs incurred by the two types of nodes. In other words, the side with higher costs will receive a larger share of the rewards. This design ensures the sustainability of the entire ecosystem’s incentives.

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GasWhisperer

· 9h ago

square root weighting is lowkey genius... means early stakers don't get absolutely decimated by whales. 60/40 split favoring KMS nodes tho? watching those infrastructure costs like a hawk rn, fees always tell the real story

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SignatureLiquidator

· 9h ago

The square root allocation trick is still somewhat interesting, but it depends on whether the KMS nodes will be dumped...

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SatoshiChallenger

· 9h ago

Interestingly, the set of square root allocations... data speaks for itself. The last project that used this method for staking users didn't even wait for the second adjustment before running away.

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BankruptcyArtist

· 9h ago

The square root distribution method is quite interesting; it feels like it's designed to prevent large players from monopolizing.

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LightningLady