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Crypto News

Privacy-Oriented Namada Blockchain Plans Innovative Shielded Airdrop For Zcash

Author

Jay Solano

Tags

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

namada airdrop zcash

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Namada is a blockchain platform that focuses on multichain privacy. According to a press release shared solely with CoinDesk, Namada plans to give its upcoming Namada staking token (NAM) to holders of Zcash (ZEC), the cryptocurrency that powers the privacy-focused blockchain Zcash.

This will be the foremost direct airdrop to shield ZEC holders — Zcash users who have chosen to keep their transaction details private. Transparent ZEC holders will also receive the airdrop of Namada staking token (NAM), but they will receive less NAM than ZEC holders who prioritize privacy.

Namada and Zcash employ zero-knowledge proofs (ZK-proofs), a cryptographic method that allows transactions to be validated without revealing details such as the sender, receiver, or transaction amount. ZK-proofs are a method for validating information without divulging the information itself. Users of ZEC can keep transaction details private (shielded) or public (transparent).

After the launch of the mainnet in May 2023, the Anoma Foundation, which is the organization responsible for Namada, is planning to finalize the exact timing and mechanics of the airdrop. Additionally, the foundation manages Anoma, a separate protocol that protects privacy.

Namada’s proposed airdrop of its upcoming staking token to holders of Zcash is part of its retroactive public goods funding strategy. This strategy involves giving back to communities and projects, such as Zcash, that have played a significant role in the development of Namada’s technology. The foundation will designate at least 20% of the estimated 1 billion NAM initial supply to retroactive public benefits funding.

Zooko Wilcox, the CEO of Electronic Coin Company (ECC), the creator of Zcash, stated that Namada is a new blockchain-focused on privacy that is set to be announced soon. Its purpose is to collaborate with Zcash by providing financial support and technological advancements to the Zcash ecosystem.

Namada has released a proposal to the Zcash community requesting research and development collaboration.

Christopher Goes, a member of the board at the Anoma Foundation, stated that the technical contributions and socio-economic program of the Zcash community were crucial in making Namada possible.