zkVerify Staking

VFY is the native token of the zkVerify network, a Layer 1 blockchain purpose-built for zero-knowledge proof verification.

Token Utilities:

• Transaction fees: VFY is the gas token used to pay for all network transactions, primarily submitting and verifying ZK proofs.
• Staking: Token holders can stake VFY as validators or nominators to secure the network and earn staking rewards.
• Governance: VFY holders can vote on protocol upgrades, parameter changes, and governance proposals.

VFY launched with a genesis supply of 1,000,000,000 tokens (1 billion). The network operates with a 2.5% annual inflation rate to fund staking rewards and network security.

Genesis allocation:

• 37.31% Community (grants, ecosystem incentives)
• 33.06% Foundation (protocol development, operations)
• 19.63% Core Contributors (team, 12-month cliff + 12-month vesting)
• 10.00% Investors (12-month cliff + 12-month vesting)

The initial circulating supply at launch was approximately 30.66% of the genesis supply. As the network grows, transaction fees from ZK proof verification supplement inflationary staking rewards.

zkVerify uses Nominated Proof-of-Stake (NPoS), the same consensus model developed for Polkadot and built on the Substrate framework.

In NPoS, validators run node infrastructure, produce blocks, and verify zero-knowledge proofs. Nominators stake VFY and delegate it to trusted validators, sharing in rewards without running any software. The active validator set is elected each era based on total stake (own stake + nominated stake), ensuring that the most well-supported validators participate in consensus.

There are two ways to participate in zkVerify staking: running a validator node or nominating VFY to existing validators. For most holders, nomination is the simplest option.

Step 1: Install a compatible wallet. SubWallet (browser extension) is recommended for ease of use. Polkadot.js is available for advanced users.

Step 2: Fund your wallet with VFY tokens. The minimum stake required is 10 VFY.

Step 3: Navigate to the staking interface via SubWallet's Nominate tab or Polkadot.js (Network > Staking > Accounts).

Step 4: Select one or more validators to nominate. We recommend selecting multiple validators to diversify risk and improve your chances of being in the active set. Check our FAQ on how to choose validators.

Step 5: Choose your reward destination and confirm the nomination transaction.

Nominations can be changed at any time without unbonding. The unbonding period when withdrawing is 7 days.

Staking rewards on zkVerify come from two sources:

Inflationary emissions: The protocol emits 2.5% of the total supply annually to fund network security. This is currently the primary source of staking rewards. Validators earn rewards for block production and ZK proof verification, keeping their commission and distributing the remainder proportionally among nominators.

Transaction fees: As adoption grows and more ZK proofs are submitted to the network, transaction fees will increasingly supplement inflationary rewards. zkVerify claims over 90% cost reduction compared to Ethereum-based proof verification, positioning it to capture significant proof verification volume.

Please note that the total annual rewards are divided among all active stakers. As the amount of staked tokens increases, the individual reward rate decreases. Model your expected returns on the Staking Rewards Calculator.

It is essential for users to stake their tokens with dependable and highly performant validators, which is why we have rolled out our Staking Rewards Verified Staking Provider (VSP) Program. Through this program, we thoroughly scrutinize potential validators, evaluating factors such as security measures, on-chain reliability, provider setup, and value-added services.

Our VSP documentation contains further details about the program. Staking Providers that are part of the VSP will have a blue checkmark displayed next to their names here.

Key criteria when selecting validators:

Commission rate: The percentage the validator takes from rewards before splitting with nominators. Lower commission means higher nominator returns, but extremely low rates may not sustain quality infrastructure.

Performance history: Check historical era points, block production consistency, and uptime on Subscan. Avoid validators that have been slashed.

Self-staked balance: A provider with a high self-stake has more to lose and is more likely to maintain reliable operations.

On-chain identity: Check whether the validator has set a verified on-chain identity. Research their website and infrastructure setup.

Diversification: Nominate multiple validators to spread risk and improve your chances of being in the active set every era.

We strive to make staking as safe and transparent as possible, however, it is important to consider the following factors:

Slashing risk: zkVerify implements slashing as part of its NPoS consensus. If a validator you nominate engages in malicious behavior (such as double-signing) or experiences prolonged downtime, both the validator's self-stake and nominator stake can be partially slashed. The severity of the penalty scales with the number of validators slashed simultaneously. Choosing reliable validators with a clean track record significantly reduces this risk.

Unbonding risk: The unbonding period for VFY is 7 days. During this time, tokens are locked and cannot be transferred or sold. In volatile market conditions, you cannot immediately exit your position. Consider keeping a portion of funds liquid if you do not intend to hold VFY long-term.

Protocol maturity risk: zkVerify launched its mainnet in September 2025, making it a relatively new network. As with any early-stage protocol, there is inherent risk of undiscovered bugs or vulnerabilities.

Protocol security risks: There is an inherent risk that the protocol could contain unknown bugs. This applies not only to staking but to the VFY investment in general.

Please note that this is not an exhaustive list of all the risks related to staking.