# 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)
