"2Z" is the currency that was launched to be the native digital token of the DoubleZero protocol, a project aimed at building a low-latency connectivity infrastructure for distributed networks and blockchain.
The core idea is to allow infrastructure providers (such as fiber optics, network links, and others) to participate in the network and earn rewards through the 2Z token, while beneficiaries (such as blockchain companies or nodes) use it to access enhanced connectivity resources.
---$2Z
How 2Z and DoubleZero work
Here are the essential components of the system:
Element Description
The protocol/infrastructure DoubleZero organizes a dedicated communications network based on contributions from fiber and link providers, and is used to reduce latency and redundancy in communications between distributed nodes.
The token 2Z is the standard token used to pay for the utilization of network resources, to distribute rewards to infrastructure contributors, and also for staking and participating in network security.
Token distribution and issuance 150 million tokens of 2Z were offered in a sale round on CoinList for qualified participants (such as node operators). The company raised approximately 28 million dollars in private funding rounds.
Gradual unlocking schedule There is a gradual unlocking schedule for several categories (team, investors, etc.) to ensure market stability and reduce pressure on the immediate price.
Blockchain network/core chain It is expected that 2Z will be issued on the Solana network using the SPL token standard first, with the possibility of expanding to other networks in the future.
Potential advantages of 2Z / DoubleZero
1. Efficiency and low latency
A dedicated network of fibers and links may reduce latency in communications between nodes, benefiting projects that require high speeds and immediate response.
2. Incentive for infrastructure contributors
Instead of relying solely on public infrastructure, the system gives individual parties the opportunity to add their resources in exchange for rewards. This can increase the scalability and geographic distribution of the network.
3. Relatively clear regulation in the United States
In an important development, the U.S. Securities and Exchange Commission (SEC) granted a No-Action Letter to DoubleZero regarding the distribution of 2Z, indicating that it would not recommend taking regulatory action if the specified conditions are met, and that based on the case presented, 2Z would not be considered securities under securities law.
This is a regulatory achievement that enables similar projects to better understand how to legally handle DePIN tokens.
4. Participation in security and staking
Holders of 2Z can stake it to support node networks or give it to others, enhancing the linkage between users and the system.
Challenges and risks
Any project in the field of cryptocurrencies faces numerous risks, and 2Z is no exception. Here are some challenges that must be taken into account:
1. Market risks and wild volatility
The market value of a new case like 2Z can fluctuate significantly — as demand may not be sustainable initially, and the project may face significant selling pressure upon the opening of vesting batches.
2. Competition in network infrastructure
There are other projects working in the field of infrastructure or communication networks or improving network performance, and they may excel in some technical or marketing aspects.
3. Broad or limited adoption
The success of 2Z partially depends on adoption by blockchain operators, nodes, and developers. If there is not enough reliance on the network, the desired benefit may not be realized.
4. Changing regulatory risks
Despite the SEC granting a No-Action Letter, this decision relies on the specific case presented by the project. Any change in the fundamentals or distribution method may alter the authorities' position.
Also, regulatory laws regarding cryptocurrencies may change over time.
5. Technical and execution risks
Building a distributed communication network requires high coordination, security, and ongoing maintenance. Any technical or security malfunction can harm the project's reputation.
6. Marketing and awareness
In some sources, the project describes itself as a 'meme coin' in some communities, which may raise suspicion about its seriousness.
Current status and key figures
The estimated total supply of 2Z is approximately 10 billion units (10 B).
On some platforms, it is mentioned that the circulating supply is nearly equivalent to the total supply.
It was also reported that the project raised approximately 28 million dollars in private funding rounds before the public offering.
According to the Cryptorank platform, the project's pre-valuation was set at 400 million dollars.
On the regulatory side, the SEC's No-Action Letter is a significant step as it shows that software distributions of the token are treated as functional distributions and not as quasi-financial assets.
Some sources indicate that the current market value is estimated in the hundreds of millions of dollars, depending on the announced supply and the token price on some platforms.
Daily trading is relatively low at times, indicating that liquidity may be limited initially.
Potential destination and future prospects
If the project succeeds in executing its technical vision and attracting broad adoption from blockchain operators and developers, 2Z could play an important role in improving the performance of distributed networks and expanding the infrastructure to connect nodes in a faster and more efficient manner.
But success is not guaranteed, as it depends on actual adoption, economic sustainability, and facing competition, alongside staying within regulatory frameworks.