ZAMA Token Staking Introduction: The protocol utilizes Delegated Proof of Stake (DPoS) mechanism, with staking rewards sourced from protocol inflation

On February 2, ZAMA officially published an article detailing its network staking mechanism. The Zama protocol uses a Delegated Proof of Stake (DPoS) mechanism, allowing users and participants to delegate their ZAMA tokens to operators that run the network’s infrastructure. There are currently 18 active operators: 13 Key Management Service (KMS) nodes and 5 Fully Homomorphic Encryption (FHE) co-processors. Staking rewards are funded by the protocol’s inflation mechanism, with an annual inflation rate of 5% of the initial total ZAMA supply. Of this, 60% goes to KMS operators and their delegators, while 40% goes to co-processor operators and their delegators. Rewards are distributed based on the square root of each operator’s total stake—meaning delegators earn higher returns by staking with smaller operators, which incentivizes network decentralization. Operators deduct a commission (up to 20%) before distributing rewards to delegators; the remaining amount is split proportionally among all delegators. Unstaking requires a 7-day unbonding period, but users can directly transfer or sell liquid staking vouchers without waiting.