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![whywhynot66 Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1774832242532966404.png) WhyNot [@whywhynot66](/creator/twitter/whywhynot66) on x XXX followers
Created: 2025-07-14 14:06:48 UTC

Let’s break down how $ZAMA works 👇

----Zama Protocol & $ZAMA Token---- 

🪙 What is $ZAMA? 
Native token of the @zama_fhe 

Used for:
👉 Protocol fees
👉 Staking
👉 Governance
🔥 Burn & Mint Model
👉 XXX% of fees are burned
👉 New tokens minted to reward node operators

💸How does the fee model work?
Free:
✅ App deployment
✅ FHE computation
Charged for:
✅ZK Proof verification
✅Decryption
✅Cross-chain encrypted bridging

🧾 Fees paid in $ZAMA, priced in USD
👉 Oracle updates $ZAMA/USD price
👉 Predictable, stable costs
👉 Users don’t need to hold $ZAMA  frontends or relayers can pay

📉 Volume based discounts
👉 Discounts from XX% up to XX%
👉 Based on usage (bits processed in last XX days)

💡 Example: confidential token transfer
   🟥64-bit values
   🟥1 ZKPoK + X decryptions
    👉 Cost: ~$0.01 to $XXXX
    👉 Light users: ~$1
    👉 Heavy users: ~$0.01

📈 Fee revenue potential
👉1 TPS = ~$3.5M / year
  If XXX TPS use Zama (~10% of global blockchain txs)
👉 Up to $1B/year in protocol revenue

![](https://pbs.twimg.com/media/Gv0s8T7XQAA2UKI.png)

XXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1944760495124160537/c:line.svg)

**Related Topics**
[zk](/topic/zk)
[mint](/topic/mint)
[governance](/topic/governance)
[staking](/topic/staking)
[token](/topic/token)
[protocol](/topic/protocol)
[$zama](/topic/$zama)

[Post Link](https://x.com/whywhynot66/status/1944760495124160537)