Solana-based DEX Zeta Markets, which specializes in derivatives trading, has launched its native token and opened airdrop claims comprising 100 million ZEX.

The airdrop is designed to both reward early users and encourage long-term participation in the protocol, according to a statement.

Zeta Markets founder Tristan Frizza told The Block in April that the token’s ticker would be “Z,” but that has subsequently changed to ZEX.

The airdrop comprises 10% of the total 1 billion ZEX supply, 8% of which is reserved for Zeta traders in Phase 1. Early stakers qualify for the remaining 2% under Phase 2 of the airdrop, which will be distributed 28 days after today’s token generation event in proportion to the amount of tokens locked and the chosen staking duration. Eligible users have 90 days to claim their airdrop allocations, the team said.

The initial airdrop is based on users' “Z-Score,” a points system on the platform related to trading activity, taken in a snapshot on June 7. There is also a community allocation, reserved for members of Zeta’s ecosystem partners who took part in Zeta's community airdrop competition.

“At Zeta Markets, our goal is to craft the ultimate trading exchange, blending speed and convenience on par with centralized platforms with the transparency and security of DeFi,” Frizza said in the statement. “The launch of $ZEX marks a pivotal step in this journey, placing decision-making power into the hands of our community while driving long-term growth in the protocol by strategically aligning the interests of different stakeholders.”

“While no airdrop is perfect, few community token distributions have been as deeply researched or thoughtfully designed as the Zeta Markets token generation event,” Avichal Garg, Managing Partner at Zeta-backer Electric Capital added. “This event exemplifies a well-structured approach to rewarding loyal users and sets a new standard for how to communicate with a community.” 

What is the ZEX token?

ZEX powers governance, staking and incentives on Zeta. The token uses a vote-escrow model — a system pioneered by Curve Finance on Ethereum where token holders lock their tokens for a set period to gain more voting power, incentivizing long-term commitment to the project.

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ZEX also serves as the native gas token and incentive mechanism for Zeta X, Zeta’s “DeFi Layer 2” on Solana, according to the team. Zeta X is designed to achieve CEX-like performance on-chain, with its mainnet expected in Q1 2025.

A further 30% of the ZEX supply is allocated to ongoing trading incentives, distributed to Zeta traders at the end of each epoch, every 28 days. The “Genesis Epoch” will run until July 25, with 8 million in ZEX trading rewards, the team said.

Founded in 2021, Zeta is one of the largest derivatives exchanges on Solana, with $17.2 million in total value locked, according to DeFiLlama data. It claims to have generated more than $10 billion in cumulative trading volume with over 125,000 monthly active users and aims to become the leading decentralized exchange for perpetual contracts on the Solana blockchain.

In May, Zeta Markets announced it had raised a $5 million strategic funding round led by Electric Capital. Digital Asset Capital Management, Selini Capital and Airtree Ventures, also participated in the round alongside angel investors, including Anatoly Yakovenko of Solana, Mert Mumtaz of Helius, Richard Wu of Tensor, Genia Mikhalchenko of Pyth, JMR Luna of Wintermute and Nom of Bonk.

That funding came nearly three and a half years after it raised $8.5 million in a round led by Jump Capital in December 2021, bringing Zeta's total funding to $13.5 million.

Zeta's venture capital investors own roughly 17.5% of ZEX's total supply, Frizza previously told The Block, adding that their tokens are vested over a period of three years following the launch, with a one-year cliff.