Zama Announces Public Token Auction Using Encrypted Sealed Bid Mechanism
Paris, France, January 20th, 2026, Chainwire
Zama has announced details of its upcoming public token auction, which will be conducted as a single price sealed bid Dutch auction using the company’s Fully Homomorphic Encryption technology. The auction mechanism is designed to keep all bids encrypted on chain during the bidding period, with the clearing price calculated without revealing individual bid data.
Auction Timeline
Registration for the public auction is currently open. Bidding is scheduled to begin on January 21, 2026 at 08:00 UTC and will close on January 24, 2026. The token generation event is planned for February 2, 2026, at which time tokens purchased through the public auction are expected to be fully unlocked.
Registration and Verification Process
Participation in the auction requires prior registration and user verification. Participants must complete the verification process and register a single wallet address, which must be the same address used for bidding during the auction period.
Bidding and Settlement Mechanics
Bids are submitted using USDT from a verified wallet. Participants specify a total purchase amount and a limit price representing the maximum price per token they are willing to pay. Following the close of the auction, a single clearing price is calculated. Bids with a limit price equal to or higher than the clearing price are allocated tokens at the clearing price. Funds associated with unsuccessful bids or price differences are returned to the participant’s wallet.
Encrypted Price Discovery
The auction uses Fully Homomorphic Encryption to allow price discovery to occur while bid data remains encrypted. Individual bid amounts and limit prices are not visible to other participants or to the auction operator during the bidding period.
Token Availability
Tokens acquired through the public auction are expected to be available without lockup at the token generation event scheduled for February 2, 2026.
Supported Wallets
The auction supports EVM compatible wallets, including MetaMask and other WalletConnect enabled wallets, provided that the bidding address matches the registered and verified address.
About Zama
Zama is an open source cryptography company building state-of-the-art Fully Homomorphic Encryption (FHE) solutions for blockchain.
Zama’s mission is to safeguard privacy by encrypting the internet end-to-end, leading the way in the development and implementation of homomorphic encryption technology. Developers and data scientists can build Fully Homomorphic Encryption (FHE) applications using the technology without having to know cryptography.