Question 1

What is VFY?

Accepted Answer

VFY is the native token of the zkVerify network. zkVerify is a proof-of-stake (PoS) Layer 1 blockchain dedicated to processing zero-knowledge proof verification: external applications can submit proofs to the network, which verifies whether they are valid without exposing the underlying data protected by those proofs during verification. Its focus is the infrastructure function of proof verification, rather than replacing applications that generate proofs or automatically executing all business logic. VFY therefore connects three types of network activity: paying for verification services, supporting the validator set through staking, and participating in token governance.

Question 2

How does zkVerify verify zero-knowledge proofs?

Accepted Answer

zkVerify works as follows: an application or user first generates a zero-knowledge proof and then submits it to zkVerify; the network's validators verify the proof during consensus and include the result in a block. The verification result can be used by systems that subsequently require the proof conclusion, while the underlying private inputs do not need to be disclosed with the result. Validators do not generate the original proof for users; instead, they check a submitted proof according to the relevant verification logic. The role of the dedicated verification layer is to separate proof verification from the application itself or other on-chain environments; applications must still decide when to generate proofs, how to reference verification results, and whether to accept those results.

Question 3

How is VFY used to pay fees when using zkVerify to verify a proof?

Accepted Answer

VFY is used to pay network fees on zkVerify, including on-chain operations related to proof submission and verification. Only after the initiator pays the fee can the transaction request processing by the network; therefore, fees are the network cost of using verification services, not rewards automatically generated by verification results. The amount a user ultimately pays depends on the on-chain resource requirements of the operation and the network's fee rules. The proof type, data required for submission, and transaction conditions at the time may all affect the cost; the amount of VFY held alone cannot be used to infer a fixed price for one verification. Fees paid are subsequently distributed and burned according to network rules.

Question 4

How can holders participate in staking with VFY?

Accepted Answer

VFY staking participates in network security by delegating tokens to validators. Validators participate in block production and proof verification; delegators support their chosen validator with staking weight, enabling it to participate in PoS consensus without having to run a validator node themselves. The network's staking incentives come from protocol-defined reward mechanisms. Validators generally first receive the applicable portion under their commission rules, and the remainder is then settled to delegators according to delegation relationships. Actual returns are not a fixed rate: verification activity, network rules, validator commissions, and validator performance all affect the outcome; delegated stake may also face corresponding penalty risk when a validator does not operate according to the rules.

Question 5

Why does validator selection affect VFY delegated staking outcomes?

Accepted Answer

When choosing a validator, commission, operating performance, and risk record affect the actual outcome of delegated staking. Commission determines the share of rewards retained by the validator; performance affects whether it continues to participate in network work; and the consequences of violations or failures to perform duties under network rules may be passed on to associated delegated positions. Therefore, a nominal reward rate alone cannot state how much VFY a holder will receive. Current network verification activity and reward rules must also be considered, as must the position of the delegated share within the validator's total stake. Staking is a mechanism for participating in network security and does not constitute a promise of fixed returns.

Question 6

What is the difference between VFY's genesis supply, initial circulation, and unlocking?

Accepted Answer

VFY has a genesis supply of 1 billion tokens and an initial circulating supply of approximately 306.57 million tokens. The initial circulating supply is lower than the genesis supply because tokens allocated to categories such as the community, foundation, core contributors, and investors are released progressively under different unlocking and vesting arrangements. Genesis supply, initial circulation, and subsequent circulation are different measures: genesis supply describes the initial total; initial circulation describes the portion that has entered the available market at the outset; and vesting and unlocking determine when other allocations can be accessed or transferred. In addition, the network has an issuance mechanism, so the initial circulating supply cannot be regarded as a permanently fixed total.

Question 7

What does VFY's 2.5% starting-year issuance rate mean?

Accepted Answer

VFY has a network starting-year issuance rate of 2.5%, used to support staking security incentives. Issuance is the protocol's creation or distribution of new token incentives according to its rules; it is a different supply path from the unlocking of existing tokens in the genesis allocation. Therefore, analyzing available supply requires examining three things at the same time: whether original allocations unlock according to the vesting schedule, whether protocol issuance continues according to the rules, and whether any burning occurs. The 2.5% is a parameter for the network's starting-year issuance rate; it is not equivalent to an annual return that a holder is certain to receive, nor does it directly provide the actual circulating supply at a given time.

Question 8

How do VFY fee burning and block producer distribution work?

Accepted Answer

Beginning on March 31, 2026, zkVerify burns 70% of paid fees and pays the remaining 30% to block producers. Burning removes the corresponding VFY from available supply; payment to block producers settles the remaining fees as compensation for network participation. This rule applies only to fees actually generated and paid, so the amount burned depends on network usage and fee volume and cannot be treated in advance as a fixed amount. It also cannot alone establish that net supply will necessarily decline: it must be compared with protocol issuance and the amount unlocking into circulation during the same period.

Question 9

How do issuance, unlocking, and burning jointly affect VFY supply?

Accepted Answer

Changes in VFY supply are jointly determined by at least three mechanisms: vesting and unlocking of genesis allocations make existing tokens available; protocol issuance supports staking security incentives; and burning among paid fees reduces the corresponding amount. The three are not substitutes for one another. For example, even if fee burning occurs during a period, the overall available supply may still increase if issuance and unlocking are greater; conversely, burning driven by higher usage does not guarantee a price change. Price also depends on demand for verification services, holder behavior, and market trading conditions; supply mechanisms can only describe one possible transmission path among them.

Question 10

How should VFY's governance use be understood?

Accepted Answer

VFY is officially positioned as one of the governance tokens, allowing holders to participate in governance related to the network. Governance means that holders can express views or vote on certain protocol rules or development matters through established processes. Whether a holder can participate in a specific governance matter, how voting power is calculated, whether a proposal has entered voting, and how results are implemented depend on the governance mechanism and proposal rules in effect at the time. Therefore, having a “governance use” does not mean that every holder has direct control over all operational matters, nor does it mean that a proposal will necessarily be adopted.

Question 11

How is zkVerify usage activity connected to VFY's fee and staking mechanisms?

Accepted Answer

VFY is both a network-service fee asset and a PoS participation asset: applications need VFY to pay network costs when submitting proofs; validators and delegators participate in security through staking; part of fees is paid to block producers, while the other part is burned according to the rules. The prerequisite for this connection is actual proof-verification activity. More verification requests may generate more fees settled according to the rules, but this does not automatically equal token buying demand or a price increase, because service providers may hold, use, or sell VFY, and the market is also affected by issuance, unlocking, liquidity, expectations, and other factors.

Question 12

When an application uses zkVerify, how does a proof verification result take effect in practice?

Accepted Answer

For applications that require zero-knowledge proof verification, zkVerify provides a dedicated layer where a PoS network processes verification results. An application first decides which proof system to use and when to submit a proof, then pays VFY for the required on-chain operations, after which network validators verify the submitted proof. Completing verification does not automatically change the original application's business state; the application or systems connected to it must still read and adopt the verification result according to their own logic. Users should therefore distinguish among the stages of “proof submitted,” “network verified,” and “result adopted by another system,” rather than treating them as the same thing.

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