A New Vision for Zero1 Labs - $DEAI v2 Roadmap

Zero1 Labs is thrilled to introduce our new vision for $DEAI, one that promises enhanced functionality, increased rewards, and a focus on sustainability for the next decade. At the core of this evolution is the Cypher FHE-EVM Layer, which serves as the foundational architecture for the next generation of Decentralized Artificial Intelligence (DeAI) ecosystem.

$DEAI as the Cypher Network Currency

The $DEAI token will play a key role in realizing this vision through the following initiatives:

1. Native Currency for Cypher:$DEAI will serve as the native currency for Cypher, facilitating transactions, staking, and governance within a Proof-of-Stake (POS) ecosystem.
2. Gas Token for Cypher FHE-EVM Layer: $DEAI will function as a gas token for the Cypher FHE-EVM Layer, supporting confidential AI processing through privacy-preserving, encrypted computations.
3. Encouraging Network Participation: $DEAI will incentivize decentralized network participation by providing staking rewards, validator incentives, and governance privileges.

Cypher FHE-EVM Layer, the heart of the DeAI ecosystem, integrates Fully Homomorphic Encryption (FHE) with Ethereum Virtual Machine (EVM) compatibility. This integration allows for privacy-preserving AI computation by enabling encrypted processing at all stages, ensuring the confidentiality of data without compromising performance.

4 Big Changes to $DEAI Token Standard

In addition to these initiatives, we are implementing four significant changes to the $DEAI token standard:

1. $DEAI as Gas Token for Cypher Network
2. $DEAI as Access Point for Cypher Nodes
3. $DEAI as a Deflationary Network Token Standard
4. Revised Vesting Structure

$DEAI will remain the core economic unit of Zero1 Labs on Ethereum, powering a POS ecosystem with a deflationary twist. It will be used for staking, governance, and transaction fees, ensuring the security, scalability, and decentralization of the Cypher network.

Cypher Nodes

Cypher Nodes are used to secure, reward, and scale the network. Existing $DEAI holders can become validators, joining a network designed for privacy and scalability. Cypher Nodes will serve as the backbone of a future that is private, secure, and decentralized in AI.

Here’s what you can do with them:

• Operators can stake $DEAI to secure the network. This ensures trustless network validation and deters bad actors.
• Validators can validate blocks and process transactions, earning $DEAI as incentives for consistent performance.

For those interested in participating in the network through nodes, there are two ways to operate a node:

• Delegate your $DEAI to an existing node and earn incentives or rewards passively.
• Run your own node using CypherValidator software to operate a localized, secure, and encrypted node.

Cypher nodes serve several key functions:

• Collateral for Node Operation: Tokens are staked as collateral by node operators to participate in block validation. This ensures accountability and deters malicious behavior.
• Earning Rewards: Nodes earn tokens as rewards for validating transactions and proposing new blocks, incentivizing consistent operation.
• Transaction Fee Collection: Nodes collect transaction fees paid in tokens by network users as compensation for processing and validating transactions.
• Governance Participation: Nodes use tokens to engage in protocol governance, voting on proposals to shape the network’s future.

Nodes can be operated in two ways:

• Delegation: Delegate to existing node validators and receive rewards for network participation.
• Run Your Own Node: Use CypherValidator Software to run your own localized node to validate and secure the network.

Holders of existing $DEAI tokens can migrate their tokens to become node validators.

Most importantly – existing stakers of $DEAI will receive a retroactive Cypher Node License that will allow them to receive future validator rewards as long as they remain staked.

The same applies for any future stakers in any of the existing vaults. 

A detailed post to be released in 2025.

$DEAI as a deflationary network token standard

Cypher’s $DEAI token standard implements deflationary measures to ensure a sustainable token model that supports AI innovation and growth. 

Here are the key mechanisms:

1. AI Model Transaction Burns: Every interaction with AI models on the network incurs a fee, with a percentage of this fee being permanently burned. This encourages usage of the network for AI applications while reducing token supply.
2. Staking Fee Burns: Validators and delegators pay a fee when staking or withdrawing tokens, with a portion of this fee being burned. Penalties for validator misconduct are also burned instead of being redistributed. This promotes active participation in staking and enhances network security.
3. Dynamic Inflation Offset: Token emissions are adjusted dynamically to offset burns from AI-related fees. Any excess burns result in a net deflationary effect, ensuring a balance between incentivizing validators and creating token scarcity as the network expands.

Overall, these mechanisms work together to foster utility and growth while gradually reducing token supply, leading to long-term value appreciation and sustainable tokenomics for Cypher’s $DEAI token standard.

Revised Vesting

Under our revised vesting plan:

Additional tranches of tokens will NOT begin vesting until the Cypher network is launched. This means that the tranches of tokens for the following groups:

• Validators
• Core Contributors
• Foundation

This aligns with the prior governance vote, which highlighted that only 1.2-1.5% of tokens will enter the supply until 20/06/2025.

What’s Next?

In the coming months, we will release a series of community updates, including guides on obtaining upcoming Cypher Node Licenses and several important community votes that will precede the network launch.

Please join our community for any questions.

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