Zama Token Sale Launches With Auction Twist: Big Move for Ethereum

Zama is taking a different path with its token launch, and the crypto market is paying attention.

Instead of a traditional sale, the privacy focused protocol is rolling out a fully on-chain auction that blends transparency with confidentiality.

By using a sealed bid Dutch auction on Ethereum, Zama aims to distribute tokens fairly while avoiding common problems like front running and gas wars.

The move also marks an important step for CoinList, signaling a shift toward non custodial and on-chain token sales.

Key Takeaways

• Zama is launching a fully on-chain token sale using a sealed bid Dutch auction on Ethereum.

• The sale distributes 12% of supply and uses privacy technology to protect bid data.

• CoinList’s involvement signals a broader shift toward non custodial token launches.

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How the Zama Token Sale Is Structured

The Zama token sale is designed as a distribution mechanism rather than a capital raise. The protocol has already launched its mainnet, and the token will be usable immediately after distribution.

In total, 12% of the 11 billion ZAMA supply will be sold through a structured process with a $55 million FDV floor.

Breakdown of the Token Sale

• 2% community sale for Zama NFT holders

• 8% sealed bid Dutch auction from January 21 to 24

• 2% post auction sale at the clearing price

The main auction will take place on the Ethereum mainnet with a floor price of $0.005 per token.

Bids are filled from highest to lowest, and the lowest accepted bid sets the final price for all participants.

This approach removes time pressure and discourages last minute tactics that often distort token launches.

Read Also: Introduction to ZAMA Crypto Project: Complete Overview

CoinList and the Shift to On-chain Auctions

CoinList plays a key role as a distribution partner, but it is not the only access point. Participants can place bids either through CoinList or directly via Zama’s own auction application.

This dual access model gives users more flexibility while keeping the auction fully on-chain.

Why This Matters for CoinList

• First fully on-chain and non custodial token sale

• Users interact directly with smart contracts

• No custody of participant funds

According to CoinList leadership, this model represents a new direction for future token sales.

Instead of collecting funds offchain, users now connect with project infrastructure directly. This reduces trust assumptions and aligns more closely with Ethereum’s core principles.

Read Also: ZAMA Privacy Token Public Auction: Here’s How to Participate!

Privacy Technology Powers the Auction

One of the most important aspects of the Zama token sale is its use of fully homomorphic encryption.

While the auction runs on a public blockchain, bid quantities remain encrypted end to end. Participants cannot see each other’s positions, yet the process remains auditable.

Benefits of a Sealed Bid Model

• Prevents front running and bid manipulation

• Reduces gas competition and network congestion

• Encourages fair price discovery

Zama’s leadership sees this auction as a live demonstration of its privacy technology. By showing that confidential data can coexist with on-chain transparency, the protocol positions itself as a practical solution for real world blockchain use cases.

Read Also: ZAMA Token Price Forecast Q1-Q4 2026

Conclusion

The Zama token sale represents more than a single launch. It reflects a broader shift toward fairer, more transparent, and privacy aware token distribution on Ethereum.

By combining sealed bid auctions, non custodial access, and encrypted data, Zama is testing a model that could influence how future projects enter the market.

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FAQ

What is the Zama token sale?

It is an on-chain token distribution using a sealed bid Dutch auction on Ethereum.

How much of the ZAMA supply is being sold?

A total of 12% of the 11 billion token supply is allocated to the sale.

What makes this auction different?

Bid data is encrypted using privacy technology while remaining on-chain and auditable.

Is CoinList the only way to participate?

No, users can bid through CoinList or Zama’s own auction application.

Where can I trade crypto safely after token launches?

Bitrue provides a secure and user-friendly platform for trading new and existing crypto assets.

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.