Zama, a project focused on fully homomorphic encryption (FHE), has announced plans to sell 10% of its ZAMA token supply through an FHE-powered sealed Dutch auction. The structure is designed to keep bid information private during the sale process, using FHE to preserve confidentiality while the auction is underway.
Auction timeline and token allocation
According to the announcement, the auction will run from January 12 to January 15, while token claims will open on January 20. Of the total supply being distributed, 8% will be sold through bidding, and another 2% will be offered at a fixed price after the auction ends. Zama also said there will be no lock-up period for purchased tokens, allowing buyers to access and manage their holdings once claims begin.
FHE as the defining feature of the sale
The token sale stands out because it directly applies FHE to the auction mechanism. Fully homomorphic encryption makes it possible to compute on encrypted data, which in this case allows bids to remain hidden while still being processed for the outcome. In token distribution and fundraising contexts, that approach could reduce information leakage and strategic behavior tied to visible bids, while also showcasing the project’s core technology in a practical setting.
Funding history and mainnet target
Zama previously raised $130 million in funding and said it is aiming to launch its mainnet by the end of the year. The upcoming token sale marks an important step in its broader token rollout and may serve as a bridge between its fundraising history and its next product milestone. Overall, the sale highlights Zama’s attempt to differentiate itself by using privacy-preserving cryptography not only as a technical focus, but also as part of its market strategy.