ZNN & QSR: Dual-Token Design

Key Takeaways

  • • ZNN is the primary token for governance, staking, and network fees
  • • QSR generates Plasma for feeless transactions when fused
  • • Fair launch — no VC allocation, no premine, no insider deals
  • • Dual-token design separates monetary and utility functions

Why Two Tokens?

Many blockchains use a single token for everything: fees, staking, governance, and utility. While simpler, this creates conflicts. When gas fees spike, it affects stakers. When staking rewards inflate, it affects users. Zenon separates these concerns with two distinct tokens, each optimized for its specific purpose.

ZNN: The Momentum Token

ZNN is the primary token of the Network of Momentum. Its functions include:

  • Pillar Staking: 15,000 ZNN required to run a Pillar (validator node)
  • Delegation: ZNN holders can delegate to Pillars to earn rewards
  • Governance: Vote on network proposals and protocol upgrades
  • Sentinel Staking: 5,000 ZNN + 50,000 QSR to run a Sentinel node

ZNN has a capped inflation rate that decreases over time, with emissions going to Pillars, Sentinels, delegators, and liquidity providers.

QSR: The Plasma Fuel

QSR (Quasar) is the utility token that powers feeless transactions through the Plasma system:

  • Plasma Generation: Fuse QSR to your address to generate Plasma over time
  • Feeless Transactions: Plasma is consumed instead of paying gas fees
  • Sentinel Requirements: 50,000 QSR needed alongside ZNN for Sentinel nodes
  • Pillar Spawning: QSR is burned when creating new Pillars

The fusion mechanism is non-custodial — your QSR remains yours, just locked. You can unfuse at any time to recover your tokens, though this removes your Plasma generation.

Fair Launch

Unlike the vast majority of modern crypto projects, Zenon had no:

  • Venture capital allocation
  • Team premine
  • Foundation treasury from genesis
  • Private sale at discounted prices
  • Insider deals or SAFT agreements

The initial distribution came from a public "xStakes" process where participants provided Bitcoin to receive ZNN and QSR. No preferential treatment, no insider advantages — everyone had the same opportunity.

Economic Design Philosophy

The dual-token model creates interesting economic dynamics:

  • High network usage increases QSR demand (more Plasma needed)
  • QSR is burned during Pillar creation, making it deflationary under certain conditions
  • ZNN staking reduces circulating supply while securing the network
  • Both tokens are needed for Sentinels, creating interdependency

This design aims to align long-term incentives: those who stake and participate benefit, while short-term speculation is less rewarded than active network participation.

Current Supply

Both tokens have relatively small supplies compared to most cryptocurrencies, with controlled inflation going to network participants. The exact figures can be verified on-chain through any Zenon block explorer.