Catenaa, Saturday, January 24, 2026-Zama, Crypto privacy protocol Zama held an onchain token sale using a sealed-bid Dutch auction, setting a $55 million fully diluted valuation floor.
The sale distributes 12% of Zama’s total 11 billion token supply across three phases: a 2% community sale to NFT holders, an 8% main auction from January 21–24 via CoinList and Zama’s own auction app, and a 2% post-auction sale at the clearing price.
Bids are fully encrypted using Zama’s homomorphic encryption technology, preventing visibility into other participants’ positions while maintaining onchain auditability.
CoinList is participating as a distribution partner, marking its first fully onchain, non-custodial token sale. Investors interact directly with smart contracts through non-custodial wallets, eliminating reliance on centralized custody.
The auction aims to seed token holders rather than raise capital, with tokens immediately usable for staking, operator delegation, and protocol fees upon claiming February 2.
The Dutch auction structure fills bids from highest to lowest price, with the clearing price paid by all successful bidders.
This design reduces gas wars, front-running, and last-second sniping, while allowing large buyers to participate without an upper limit on individual bids.
Zama’s auction demonstrates the protocol’s approach to confidential blockchain operations, combining privacy with transparency and serving as a model for potential future distributions on its platform.
The company has previously raised over $150 million from investors including Multicoin, Pantera, and Protocol Labs.
