ZERA (ZRA) Tokenomics: Background Paper

ZERA (ZRA) Tokenomics: Background Paper

Introduction

ZERA is the native coin of the ZERA Network. It is the foundation of the network’s usage,

serving as the ultimate arbiter of governance, protocol security, and fees. Unlike inflationary or

centrally controlled assets, ZERA’s tokenomics are designed around autonomous governance,

network activity, structured fee flows, and a transparent supply management system.

Coin Supply

• Initial Supply: 6,291,475.42238 ZERA

• Maximum Supply: 906,291,475.42 ZERA

• Supply Management: Minting and burning are managed exclusively by on-chain

governance and smart contracts — no central authority exists.

From inception, ZERA had no unilateral minting function. Instead, the community proposed,

voted, and implemented the supply management contract via governance and autonomous

execution. That contract was later upgraded — also through governance — to refine minting

logic, burning schedules, and long-term supply controls.

Fee Model

ZERA underpins the fee system. Its design ensures validator incentives, treasury allocations, and

coin life cycle.

If ZERA (ZRA) is used as the fee instrument:

• 25% Burned — permanently reducing circulating supply.

• 25% Treasury — allocated to governance-managed treasury for grants, protocol support,

and ecosystem development.

• 50% Validators — distributed to validators, securing the network.

If a non-ZERA coin (ACE enabled) is used as the fee instrument:

• 50% Treasury — allocated to treasury.

• 50% Validators — distributed to validators, securing the network.

This dual-path fee system makes ZERA the most efficient and governance-aligned fee coin that

acts as the ultimate arbitrator, while still allowing other ACE enabled coins to integrate into the

network’s native usage.ACE Integration

ZERA is always ACE enabled by default. This means:

• It is the native staking coin, embedded into validator security. ZERA must have a

minimum of 50% of the total network stake.

• It is the universal fee coin, usable for all transactions.

While other coins can become ACE enabled through governance implemented measures, ZERA’s

ACE status is permanent, ensuring its core role in both network usage.

Governance and Treasury

ZERA’s Tokenomics are inseparable from governance:

• The treasury is supported continuously by network fees.

• Governance decides allocations for grants, protocol upgrades, and ecosystem initiatives.

• Smart contracts enforce decisions autonomously, eliminating reliance on intermediaries.

By binding treasury flows directly to governance, ZERA allows protocol development and

community initiatives to be continuously funded and community driven.

Supply Management

The below is provided on a best effort basis and subject to change or error . Models may not be exact.

Supply Bucket System

ZERA’s supply management uses a bucket model. Supply burns are determined by implemented

intervals. Together, this creates dynamic but predictable adjustments. This approach allows for

predictable supply distribution while allowing flexibility for governance to adapt. The supply

management system has a maximum of 800,000,000 coins allocated.

Burn

The implemented supply management burns coins from all buckets over time under governance

implemented parameters. The charts below illustrate the currently proposed, implemented, and

executed mechanisms:

Refund

The supply management protocol implements a “refund” mechanism whereas if the user is

dissatisfied with the utility ZERA provides the user, they can reverse the transaction under

predefined parameters. This can provide those who may be new or cautious with a

permissionless safety net while allowing them to explore the utility ZERA has to offer.

The refund policy effectively presents 2 options, “A” and “B”, whereas A is a full refund over a

period over a period of about 3 months and option B whereas a larger, but not full percentage is

immediately returned. Both are illustrated in charts below:

Supply Management in Action

ZERA’s implementation of supply management demonstrates how governance controls its base

coin:

1. 2. 3. 4. Proposal — Community introduced supply management through governance.

Voting — Holders approved the proposal on-chain.

Implementation — The contract was deployed with approved functionality while

governance maintains total control.

Upgrade — Governance can update the contract over time to fit the evolving needs of its

users.

This cycle demonstrates ZERA’s adaptability: supply is not static, but evolves through

governance consensus.

Conclusion

As the native coin of the ZERA Network, ZERA is more than a medium of exchange. Its

tokenomics are embedded into the governance engine, allowing supply, usage, fees, and treasury

functions to be transparent, decentralized, and community controlled.

Key features include:

• Capped supply.

• Burn mechanics tied to usage and other governance approved mechanisms.

• Fees that balance burns, treasury support, and validator rewards.

• Permanent ACE status, securing its role in fees and staking.

• Governance-driven supply management, where issuance and upgrades are fully

community-controlled.

ZERA is the structural foundation of the network: a base coin designed for durability, legitimacy,

and adaptability through decentralized governance.