Introduction

Blockchain has opened up new avenues for decentralized applications (dApps) and web3 oracles. However, the secure and private retrieval and verification of data remain a significant challenge.

This paper introduces a ZKON network that synergistically combines Multiparty Computation (MPC) and Collaborative Zero-Knowledge Proofs (Collaborative ZK). This dual-layered approach aims to provide a comprehensive solution for both data integrity and privacy, extending the applicability of blockchain technology into previously challenging domains.

Additionally, within this document, we will also showcase a model of the network, illustrating how rewards are distributed.

Workflow Overview

The ZKON token is the lifeblood of ZKON network ecosystem, pivotal in ensuring network economic security and gas to operate. ZKON's has a total 500,000,000 fixed supply model.

The main functionality of ZKON is to access ZKON network services. To become a participant of the network, nodes must stake ZKON tokens to participate and earn rewards for their contributions. The system counters inflation by burning tokens from nodes that acts maliciously. The protocol is ruled by its decentralized governance, driven by ZKON token holders, ensuring adaptability and community-centric decisions.

Token Economic Model

The ZKON tokenomics is designed to fuel ZKON Oracle Network, based on ZKON Network operational workflow. By aligning the tokenomics closely with the product lifecycle, ZKON aims to create a thriving ecosystem that solves account connectivity trust issues.

Token Dynamics

• Minting: A total of 500,000,000 ZKON tokens will be generated during the Token Generation Event (TGE). This sets a hard cap on the total supply, ensuring no additional ZKON tokens will ever be minted, thereby creating a fixed supply model.
• Burning: ZKON tokens will be systematically burned as part of a slashing mechanism designed to penalize Oracles that violate protocol rules. Additionally, the governance mechanism allows for community-driven decisions to burn tokens, further affecting the circulating supply.

Incentive Mechanisms

• Securing the Network (Staking): Oracles are mandated to stake a certain amount of ZKON tokens to participate in the network. The staking mechanism not only secures the network but also influences Oracle selection for data verification tasks. Each Oracle must stake 500,000 ZKON to become eligible. Rewards are distributed at the end of each epoch, which lasts 24 hours.
• Slashing Mechanism: To uphold the network's integrity and reliability, a stringent slashing mechanism is in place. Oracles found to be engaging in dishonest practices or providing inaccurate data will be penalized by slashing 20% of their staked ZKON tokens. These slashed tokens are subsequently burned, reducing the overall supply and increasing scarcity.
• Reward Mechanism for Oracles: Oracles earn rewards in the form of ZKON tokens for successfully completing data verification tasks. The reward amount is dynamically calculated based on your role on the network:
  • Oracle Rewards: 90% of the total rewards pool is allocated to Network Oracles. This incentivizes Oracles to provide accurate and timely data.
  • Protocol Treasury: The remaining 10% of rewards go to the Protocol Treasury, which can be used for future development and ecosystem growth.

Governance

• Proposal Mechanism: Governance is fully decentralized, empowering ZKON token holders to propose changes or introduce new features to the network. To submit a proposal, a minimum threshold of staked ZKON may be required, serving as a spam deterrent.
• Voting: After a proposal is officially submitted, a voting period commences. During this time, ZKON token holders can cast their votes, which are weighted according to the number of tokens they hold. For a proposal to pass, it must secure a predetermined percentage of affirmative votes.