@LayerZero_Core has set November 30 as the launch date for the mainnet of Zero, its own layer 1 blockchain, alongside its native settlement layer, lzATLAS. The launch is a major step in Layer
@LayerZero_Core has set November 30 as the launch date for the mainnet of Zero, its own layer 1 blockchain, alongside its native settlement layer, lzATLAS. The launch is a major step in LayerZero's shift from a cross-chain messaging protocol to infrastructure for financial markets, with the $ZRO token at the centre of the fee model.
The first release will go live with Open ATLAS, which is set to integrate more than a dozen decentralized exchange platforms to support liquidity. ATLAS is short for Aggregated Trading, Liquidity and Settlement. The Block reported that it is built on the Zero blockchain and designed to combine matching, clearing, settlement and risk functions.
Institutions are expected to use the platform to test cross-chain transfers of traditional capital-market processes. These involve US equities and sovereign fixed-income markets, which together see more than $1 trillion in daily trading value.
Zero was announced in February. CoinDesk noted that the project has involved DTCC, Intercontinental Exchange and Google Cloud, along with a strategic investment from Citadel Securities. The chain uses zero-knowledge proofs to verify trades onchain, according to The Block.
The platform pairs a high-throughput execution layer with a deflationary sink for $ZRO. Under the fee design, 75% of fees are rebated through a spot-market buy-and-burn mechanism.
The details of the fee split were outlined when ATLAS was unveiled in August. According to The Block, ATLAS charges a single all-in trading fee. In Open ATLAS, trading venues receive rebates of 20% to 65% depending on their ZRO stake and trading volume. Of the fees that remain, 25% goes to market creators and 75% is used to buy and burn ZRO.
$ZRO also has a role in network security. The Block reported that it will secure Zero through delegated proof-of-stake, serve as the gas token and be used for governance. Trading venues can stake it to qualify for higher rebates.
Whether the burn mechanism has a meaningful effect will depend on how much trading volume ATLAS attracts. CoinMarketCap's analysis noted that the mechanism's effectiveness is untested until ATLAS and Zero go live.
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