🔸 Research • Zilliqa
Zilliqa 2.0: Upgrade, Tokenomics & Fee Burning
Analysis of Zilliqa 2.0: PoS upgrade, sharding scalability, deflationary tokenomics, and fee-burning mechanisms for next-gen blockchain adoption.
Howinu Research
Research · Blockchain
🔸 Key Changes in Zilliqa 2.0
Zilliqa 2.0 marks a major evolution of the network, shifting from hybrid PoW + pBFT to fully Proof-of-Stake (PoS). This upgrade enhances scalability, reduces energy consumption, and introduces new tokenomics with a fee-burning mechanism.
🔹 1. Consensus Upgrade
- Old: Hybrid PoW + pBFT
- New: Full PoS with sharding → thousands of TPS
- More energy efficient and scalable
🔹 2. Tokenomics
- Max Supply: Fixed at 21 Billion ZIL (hardcoded)
- Staking Rewards: Validators/delegators earn from non-burned transaction fees + protocol-defined rewards
- Future: Rewards rely fully on transaction fees once maximum issuance is reached
🔹 3. Fee-Burning System
- Portion of each transaction fee is burned → permanently reduces supply
- Remaining portion given to validators & stakers
- Ensures a deflationary effect over time
🔹 4. Impact on Users
- Token Holders: Automatic balance migration
- Stakers: Must restake under new PoS system
- Developers: Benefit from faster, cheaper, scalable transactions
🔹 Conclusion
Zilliqa 2.0 introduces a modern PoS model, deflationary tokenomics, and improved scalability. Fee burning + fixed supply makes ZIL increasingly scarce while incentivizing validators and securing the network.