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Rewards

Core Token: zeSOL (zelanaSOL)​

  • A hybrid Liquid Staking Token (LST) launched via Sanctum white-label.
  • On L1 (Solana Mainnet): Standard LST—users deposit SOL → mint zeSOL →underlying SOL staked to Zelana Labs validator(s) → earns native Solana staking yields (~7-12% APY, including MEV via Jito, look into BAM integration).
  • On L2 (Zelana Rollup): Bridged zelanaSOL becomes a shielded privacy coin (encrypted balances/transfers)—enabling anonymous private txs without leaks. No new emissions or governance token—pure real yields, no dilution.

Validator Structure & Rewards​

  • Two Layers of Validators (both rewarded in zelanaSOL from a unified pool):
  • L1 Validators: Zelana Labs nodes (potentially delegated later) stake deposited/bridged SOL → capture base yields/commissions/MEV.
  • L2 Custom Validators: Sovereign operator network running ZK-rollup (and maybe prover layerr) for shielded batches and encrypted state transitions.
  • Reward Sources (One pooled treasury):
    • L1 staking rewards from all deposited/bridged SOL.
    • L2 micro-fees from private transactions (subsidized for UX, but protocol skims for the pool).
  • Distribution: Pro-rata to bonded stake + performance bonuses (uptime/proof speed). L2 claims via anonymous ZK-proofs. Slashing on faults redistributes to honest operators.
  • Effective Yields: 8-15%+ APY in zelanaSOL (stacks passively on L1, scales with TVL/fees)—competitive double-dip without restaking dependencies.

Key Design Choices​

  • Sovereign Custom Approach: Full on-rollup rewards program (Anchor-based escrow/slashing)—no reliance on AVS (e.g., Solayer/Picasso) to preserve privacy purity and control.
  • Privacy Focus: End-to-end shielded (bonds, claims, txs) —audit keys for compliance.
  • Bootstrap Plan: Early treasury seeds, quests; partner with Arcium (for tech/traction) and Sanctum (LST launch/liquidity). Grants/partnerships to fund development.

In essence: Zelana is the "private JitoSOL"—liquid yields on L1, fully shielded utility on L2, rewarding both layers' validators with real SOL-derived income in a tokenless, high-privacy flywheel.