What is confidential token distribution?

Confidential token distribution lets token issuers run vesting, airdrops, allocations, and OTC deals onchain without exposing who gets what. With the Zama Protocol, allocations are encrypted at the token level with Fully Homomorphic Encryption (FHE), while claims, transfers, and settlement stay onchain and fully auditable. Addresses stay public; amounts stay encrypted.

Which token operations can be made confidential?

Four operations, one SDK: vesting and cap tables, airdrops and TGE, OTC and Dutch auctions, and DAO treasury and contributor compensation. Vesting logic stays onchain without publishing who holds what, distributions happen at scale without creating a public targeting list, and price discovery runs without broadcasting intent to the mempool.

Do existing vesting contracts need to be rebuilt?

No. Existing vesting primitives, such as time-lock, streaming, and claim mechanics, wrap 1:1 with ERC-7984, the confidential token standard, so audited contracts do not need to be rewritten. The blockchain processes vesting, claims, transfers, and treasury operations while allocations remain encrypted at every step.

How does confidentiality reduce sell pressure and sybil farming?

On a public ledger, every cliff is a sell-pressure signal and every airdrop amount fuels sybil farming before launch. With allocations and vesting schedules encrypted before they reach the blockchain, the market cannot read who holds what or when unlocks land, which reduces signaling and front-running risks.

What is TokenOps and how does it relate to Zama?

Zama acquired TokenOps, an enterprise-grade token platform for distributions, airdrops, and vesting. Zama integrates it with Fully Homomorphic Encryption (FHE) to deliver confidential, compliance-ready token distributions that reduce front-running and signaling risks for institutional token issuers. Tax authorities, fund administrators, and EOR providers retain access by role.

Distribute tokens. Keep the allocations confidential.

Every Web3 token operation runs onchain, but the public ledger publishes cap tables, vesting schedules, and OTC pricing line by line.

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Onchain cap tables are public cap tables. Sell pressure at every cliff. Senior contributors decline transparent comp; sybil farms drain airdrops.

Zama is HTTPS for onchain finance: addresses stay public, amounts get encrypted.

Verifiable

Onchain settlement, fully auditable.

Encrypted

Allocations encrypted at the token level.

Compliant

Tax authorities, fund admin, and EOR retain access by role.

Composable

Drops into your existing stack.

$19B

value of airdrops distributed in 2024, all of it publicly visible on public ledgers

Coinlaw.io

$60B

peak TVL at Magna alone (acquired by Kraken in 2025) — the token-vesting market's scale, exposed line by line

The Block

88%

of token sales trade below their TGE price; sybil sniping and predictable unlock sell pressure compound the problem

Onchain.org

The token operations that can't be public.

Vesting and cap tables, airdrops and TGE, OTC and Dutch auctions, DAO treasury and comp — four operations, one SDK.

Vesting and cap table

Every cliff is a public sell-pressure signal and every allocation is permanently tied to a wallet. Keep vesting logic onchain without exposing who holds what to the market.

Airdrops and TGE

Transparent recipient amounts fuel sybil farming before launch and sell pressure at the moment of it. Distribute at scale without turning your TGE into a public targeting list.

OTC and Dutch auctions

Pricing intent leaks before fills, moving the market against you. Run price discovery onchain without broadcasting your hand to every participant watching the mempool.

DAO treasury and contributor compensation

Every treasury move and contributor payment is visible on public governance trackers. Keep governance transparent without making individual flows a public record.

Zama is a protocol, not a chain. A standard, not a silo

The Zama Protocol is in production on Ethereum mainnet and ready to be implemented into the chains, custody, wallets, and compliance stack institutions already run.

Client-side Fully Homomorphic Encryption

Allocations, vesting schedules, and treasury movements are encrypted in the token-management platform's environment before they reach the blockchain. Plaintext never leaves your system.

Computation on encrypted data

The blockchain processes vesting, claims, transfers, and treasury operations while ERC-7984 keeps allocations encrypted. Existing vesting primitives — time-lock, streaming, claim mechanics — wrap 1:1; no rebuild of audited contracts.

Compliance, control and public verifiability

You decide who sees what, role by role, through the Zama Protocol's Access Control List (ACL) and selective disclosure features.

Institutions and teams already building with Zama

From confidential payroll to institutional trading — real deployments, on Ethereum mainnet, today.

Morpho - Confidentiality Meets DeFi Yield

Confidential USDC now earns yield through Steakhouse USDC Prime on Morpho, the same vault strategy and risk profile, with deposit size, direction, and timing encrypted onchain.

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T-REX - Institutional-Grade Confidentiality Infrastructure for RWA

Zama became the default confidentiality layer for T-REX Ledger, bringing FHE-powered privacy, compliance and interoperability together in one public blockchain infrastructure built for institutional scale.

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Bron - Confidential payroll on Ethereum mainnet.

Bron's CFO paid team salaries on Ethereum mainnet using confidential USDT, amounts encrypted end-to-end with FHE, visible only to sender and recipient.

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Raycash - Private, compliant banking rebuilt onchain.

Raycash delivers a Revolut-style banking experience — IBANs, cards, yield — fully self-custodial and powered by Zama's FHE encryption, keeping balances and transactions private while remaining compliant with regulators.

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Blockscout - The first explorer to support confidential tokens natively.

Blockscout now indexes and displays ERC-7984 confidential token activity, showing transfers, senders, and recipients onchain while keeping encrypted amounts fully private, powered by the Zama Protocol.

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GSR - The first confidential OTC trade on Ethereum mainnet.

GSR executed the first confidential over-the-counter trade using the Zama Protocol, with transaction amounts encrypted onchain between two KYC'd counterparties, eliminating information leakage and front-running risks.

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