Tokenomics

The ZK-AgentMesh ecosystem is underpinned by a crypto-native token model that fuels coordination, governance, staking, and incentivization. This section outlines the token’s roles, distribution mechanisms, and long-term value flows.

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Utility Roles

The native token (ZKM) is used for:

• Staking on Proof Claims: Developers stake ZKM tokens to assert training quality, compliance, and ethics. Slashing occurs for invalid or falsified claims.

• Verification Incentives: Validators who audit proofs earn ZKM as a reward for contributing to system integrity.

• Payment Settlement: While x402pay supports multiple assets, ZKM is the default settlement token with fee discounts.

• Agent Deployment Fees: Listing verified agents on the registry requires a one-time or periodic ZKM bond.

• Governance: Token holders can vote on protocol upgrades, circuit approval policies, fee schedules, and registry curation mechanisms.

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Supply Mechanics

• Initial Supply: 1,000,000,000 ZKM

• Inflation Schedule: Linear over 5 years with tapering to a capped maximum of 1.25B.

• Emission Sources:

  • Verification rewards

  • Staking yield

  • Ecosystem grants (training, infra, tooling)

• Burn Mechanisms:

  • 10% of platform fees are burned

  • Slashed stakes from invalid proof claims are burned

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Distribution Models

Category	% Allocation	Vesting Schedule
Ecosystem Rewards	35%	Continuous via staking/mining
Core Contributors	20%	1-year lock, 3-year vest
Verifier & Research DAO	15%	DAO-managed, vesting optional
Strategic Partners	10%	1-year lock, 2-year vest
Liquidity & Exchange Resv.	10%	Rolling unlock
Treasury & Governance	10%	DAO-controlled

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Value Capture Loops

• Demand drivers:

  • Token required for staking and listing

  • Reduced call fees with ZKM

  • Exclusive governance privileges

• Sink mechanics:

  • Proof challenge bonding (escrowed stake)

  • Registry priority fees

  • Access to enterprise features (e.g., custom verification SLAs)