Zama Announces Token Sale in a Sealed-Bid Dutch Auction Format

The team behind the Zama platform, which enables the launch of private smart contracts on public blockchains, has announced a token sale in the form of a sealed-bid Dutch auction. As reported on Zama's official X page, up to 10% of the total $ZAMA token supply will be sold during the campaign.

The auction, scheduled to run from December 12, 2025, to December 15, 2025, will have a minimum price of $0.005 per token, corresponding to a fully diluted valuation (FDV) of $55 million. A key feature of this auction is the absence of bid limits, as well as the complete confidentiality of participant information. No one will know who placed a bid or at what price, ensuring a fair pricing process and token distribution.

Zama has already demonstrated significant success in raising funds. In a previous funding round, the team raised $57 million at a $1 billion valuation, with the total amount raised reaching $130 million. These funds were directed toward developing Fully Homomorphic Encryption (FHE) technology, which underpins the Zama protocol. The protocol allows data confidentiality on public blockchains like Ethereum without requiring a transition to new networks.

Registration for the auction will begin on December 14, 2025, on the official website auction.zama.org. The claim of tokens, which will be fully unlocked and immediately available for use, is scheduled for December 20, 2025. The $ZAMA tokens can be used to pay for encryption and decryption fees, as well as for staking and delegating to operators to secure the network.

Zama positions itself as "HTTPS for blockchain," adding a layer of confidentiality to existing public blockchains. Thanks to FHE, users can keep their transactions and network states encrypted while still allowing smart contracts to be executed. This makes the platform particularly attractive to institutional investors and traditional financial institutions seeking to maintain the privacy of their operations.

Industry experts note that the sealed-bid Dutch auction format, which leverages Zama's own technology to ensure bid confidentiality, could become a new standard for token sales. This not only minimizes the influence of bots and speculators but also ensures a more even distribution of tokens among participants.

All that remains is to wait for the registration to start and see how this innovative approach will impact the cryptocurrency market.