ZOTH, an ERC20 token, is integral to the protocol's operation, facilitating a reduction in dependency on centralized third-party services. The Zoth protocol aims for a phased decentralization of various critical processes, including Asset Validation, Due Diligence, Liquidity, and Sourcing of assets, to ensure the protocol's autonomous and efficient functioning.
Utility of ZOTH
The Zoth Protocol, serving as an ecosystem, aims to enhance liquidity flow between Onchain Finance (OnchainFi) and Traditional Finance (TradFi). A significant aspect of ZOTH's utility lies in its ability to obviate intermediaries within this ecosystem, thereby streamlining operations. The intrinsic value of ZOTH is primarily linked to the collection of Transaction Fees and Asset Management Fees. These fees are subsequently distributed among stakers participating in the governance model, thereby incentivizing their involvement in the platform's decision-making processes.
Central to the governance of the Zoth platform is the Zoth DAO, which is instrumental in guiding the protocol towards its strategic objectives. The governance model adopted by Zoth encompasses a wide range of functions, including protocol enhancements, access control based on rules, financial management, and organizational governance, thereby fostering a transparent and efficient environment for DAO members. The governance mechanism is predominantly driven by ZOTH stakers, ensuring a democratic and equitable platform operation.
Key components of the Zoth governance model include:
Participation: Zoth governance framework determines the criteria for asset managers and investors to participate in the protocol. This aspect is particularly pivotal for onboarding users into the Zoth Fixed Income platform, where a delegated validation mechanism is employed. Through this mechanism, stakers can assign the responsibility of onboarding asset managers to a suitably qualified validator, thereby maintaining a high standard of participation within the platform.
Zoth is set to announce publicly the specific qualification criteria for asset managers and validators in the near future.
Fee Structure: Zoth adopts a comprehensive approach towards fee management, balancing the interests of investors and asset managers. By setting forth clear guidelines regarding investment fees and staking requirements for asset managers, the platform aims to establish a fair and transparent financial ecosystem that benefits all stakeholders.
Protocol Updates: The governance framework of Zoth empowers stakers with the ability to propose and enact modifications across various facets of the platform. This participatory approach ensures that the protocol remains adaptive and responsive to the evolving needs of its users and the broader market dynamics.