Role of $ZEX

The $ZEX token is the governance token of the Zeta Markets protocol, designed to strategically align the interests of our community with the protocol’s overarching goals. We are excited to expand the scope of $ZEX utility beyond governance and incentives (outlined in the token whitepaper [2]) through ZX.

$ZEX will serve as the native gas token on the Zeta rollup, facilitating transactions that occur on the ZX rollup. Secondly $ZEX will be used as an incentive mechanism to compensate the stakeholders that perform critical operations on ZX such as sequencers that order and produce blocks, full nodes that publish state commitments and prover nodes that verify state transitions.

Beyond rollup infrastructure, we are envisioning further use cases of $ZEX on ZX by offering additional utility to long term stakeholders that stake $ZEX such as exclusive fee tiers.