ZAMA Privacy Token Public Auction — Here’s How to Participate!

Zama is preparing one of the most anticipated events in the Web3 privacy sector: the ZAMA Privacy Token Public Auction. Built on Ethereum and powered by Fully Homomorphic Encryption (FHE), this sealed-bid Dutch auction introduces a groundbreaking approach to fair price discovery and secure token distribution. 

Up to 10% of the $ZAMA supply will be made available, offering a global audience the opportunity to participate in the future of encrypted computation.

Scheduled for January 12–15, 2026, with clearing from January 16–19 and claiming beginning January 20, the auction ensures privacy, fairness, and equal access. Because FHE keeps bid quantities confidential, participants can engage without frontrunning or bot-driven manipulation. All $ZAMA tokens distributed through the auction are fully unlocked, enabling immediate utility across the Zama Protocol.

What Makes the ZAMA Auction Unique?

Many token sales are undermined by transparent bid structures that favor bots or high-frequency traders. Zama’s auction eliminates these vulnerabilities through:

• Public prices but encrypted quantities

• Protection from frontrunning

• Zero gas wars

• Uniform clearing prices for all winners

• A dual distribution structure: 8% auction + 2% fixed-price sale

By using confidential ERC-7984 stablecoins alongside FHE, Zama delivers a secure and equitable model for token distribution.

Read Also: Top 3 Privacy Coins You Should Know

Auction Structure: Four Phases You Must Understand

Phase 1: Shielding (Post-Mainnet)

Following Zama’s mainnet launch expected by the end of 2025 participants can begin shielding USDC, USDT, or DAI into confidential ERC-7984 stablecoins. Shielding can be done through the official auction app, compatible wallets such as Bron.org, or partner platforms announced later.

During shielding:

• Funds remain in your wallet

• Nothing is locked

• Shielding extra stablecoins increases bidding flexibility

Phase 2: Bidding (January 12–15, 2026)

Participants may place multiple bids over a four-day window. Each bid contains:

• A public bid price in $0.005 increments (starting from a $55M FDV floor)

• A private, encrypted bid quantity

Bids can be canceled or adjusted anytime. There are no race conditions, no gas wars, and no exposure of bidding strategies.

Phase 3: Clearing (January 16–19, 2026)

When bidding closes, all bids are ranked from highest to lowest price. Allocation follows:

• Bids above the clearing price receive full allocation

• Bids at the clearing price receive pro-rata allocation

• Bids below the clearing price receive full refunds

A total of 8% of tokens are distributed through the auction, followed by a 2% fixed-price sale capped at $10,000 per participant.

Phase 4: Claiming (From January 20, 2026)

Participants can claim:

• Unlocked ERC-20 $ZAMA tokens

• Refunds in ERC-20 or confidential stablecoin form

Tokens can be used immediately for:

• Encryption fees

• Staking

• Delegation

• Network participation across the Zama Protocol

Read Also: What Is ZkPass (ZKP)? A Complete Guide to Its Features and Technology

How to Participate: Step-by-Step

1. Pre-Register Your Interest

Visit auction.zama.org and complete pre-registration to receive notifications when shielding opens.

2. Prepare an EVM-Compatible Wallet

Any standard EVM wallet works. Additional partners will be announced.

3. Shield Your Stablecoins

Convert USDC, USDT, or DAI into confidential ERC-7984 stablecoins through the auction interface or a supported wallet.

4. Place Your Bids

Submit bids during January 12–15, 2026. Adjust or cancel them at any time.

5. Claim Your Tokens

Return starting January 20 to claim unlocked $ZAMA tokens and any refunds.

Conclusion

The ZAMA Privacy Token Public Auction marks a significant milestone for decentralized privacy technologies. By combining encrypted bidding, confidential stablecoins, and a transparent clearing mechanism, Zama sets a new standard for fairness in Web3 token distribution. 

Whether you are a privacy advocate, developer, or early supporter, this auction offers a pathway to participate in an ecosystem built around secure encrypted computation. Prepare your wallet, shield your funds, and engage confidently the future of privacy-focused blockchain innovation begins here.

Read Also: Privacy Tokens Lead YTD Gains: Zcash and Dash Surge in Global 24-Hour Privacy Buzz

FAQ

What is the Zama Public Auction?

A sealed-bid Dutch auction selling up to 10% of the $ZAMA supply, using FHE to keep bid quantities private and ensure fairness.

When does the Zama auction take place?

Bidding runs January 12–15, 2026, with clearing on January 16–19 and claiming starting January 20.

What currencies can I use to participate?

USDC, USDT, or DAI converted into confidential ERC-7984 stablecoins before bidding.

Are $ZAMA tokens locked after the auction?

No. All tokens from the auction are fully unlocked at claim time.

What wallets can I use for bidding?

Any EVM-compatible wallet, including partners such as Bron.org, with more to be announced.

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