What is 0x Protocol ($ZRX)? A Complete Guide

The world of decentralized finance (DeFi) thrives on open infrastructure, and one of the pioneering projects leading this charge is 0x Protocol. Known for facilitating peer-to-peer asset exchange on Ethereum and beyond, 0x Protocol (ZRX) has become a backbone for many decentralized applications (dApps). 

If you’ve ever wondered what is 0x Protocol or how the ZRX token utility works, this guide will explain everything you need to know.

What is 0x Protocol?

0x Protocol is an open-source framework that allows developers to integrate decentralized trading directly into their applications. By using smart contracts, 0x eliminates the need for centralized intermediaries, reducing costs and increasing transparency.

Since its inception, the protocol has supported over $200 billion in trading volume and is leveraged by wallets, portfolio trackers, decentralized exchanges, and gaming platforms. This flexibility makes 0x Protocol one of the most widely adopted solutions in the DeFi ecosystem.

READ ALSO: 0x Protocol (ZRX) Price Prediction 2025-2030: Can It Keep Rising?

ZRX Token Explained

At the heart of 0x Protocol lies the ZRX token, an ERC-20 asset designed to:

• Enable Governance: ZRX holders can vote on protocol upgrades and treasury decisions.
• Incentivize Liquidity: Relayers, who provide order books and liquidity, earn ZRX fees.
• Facilitate Protocol Operations: ZRX is used to cover certain functions, making it an essential element of the network.

By combining governance and utility, ZRX creates a feedback loop that keeps the ecosystem decentralized and community-driven.

Key Features of 0x Protocol

• Multi-Asset Support: Beyond ERC-20 tokens, 0x also supports non-fungible tokens (NFTs), giving it broad applicability.
• Developer-Friendly: Its modular design makes it easy to integrate into web3 applications.
• Real-World Use Cases: From in-game economies to DeFi platforms, 0x offers infrastructure wherever asset trading is needed.
• Security: Built on Ethereum, the protocol benefits from its robust security model and has undergone independent smart contract audits.

Tokenomics and Circulation

The maximum supply of ZRX is capped at 1 billion tokens. Distribution includes:

• 50% sold to investors during its 2017 ICO.
• 15% allocated to core development.
• 15% reserved for ecosystem growth.
• 10% for the founding team (with vesting).
• 10% for advisors and early backers.

This distribution supports both the project’s long-term sustainability and community growth.

Why 0x Protocol Matters in Crypto

Unlike some protocols that focus narrowly on exchanges, 0x enables flexibility. It can be applied to marketplaces, decentralized finance products, and even applications where trading is not the main feature. With its proven track record and governance-driven model, 0x Protocol has cemented its role as a foundational layer for decentralized trading.

READ ALSO: What Is Synthetix (SNX) Crypto and Everything You Need to Know

Conclusion

0x Protocol has evolved into a critical piece of web3 infrastructure, empowering developers to build decentralized exchanges and asset trading systems without starting from scratch. With the ZRX token utility ensuring governance and incentivization, 0x continues to be a major driver of DeFi innovation.

For those asking “What is 0x Protocol crypto?”, the answer is clear: it’s a protocol that blends efficiency, security, and decentralization to shape the future of peer-to-peer trading.

For more in-depth crypto market updates and predictions, check out the latest posts on the Bitrue blog — or explore trading directly on Bitrue’s platform.

FAQ

What is 0x Protocol used for? 

It’s used for decentralized trading of ERC-20 and NFT assets across web3 applications.

Who created 0x Protocol?

It was founded in 2016 by Will Warren and Amir Bandeali.

What is the ZRX token utility?

ZRX is used for governance, liquidity incentives, and protocol operations.

How many ZRX tokens exist?

The maximum supply is capped at 1 billion tokens.

Is 0x Protocol secure?

Yes, it runs on Ethereum and its contracts have undergone third-party audits.