# How it works ## Auction process {% stepper %} {% step %} ### Registration ***Starts on January 9, 2026***\ ***Register here:*** [auction.zama.org/register](https://auction.zama.org/register) To participate in the Zama Public Auction, you must first register to verify your identity and wallet address. * Registration is mandatory for all participants * Only approved wallets can place bids {% hint style="warning" %} #### Wallet compatibility **Smart wallets** like SAFE, Base and others that implement account abstraction features are currently **incompatible** with some features of the Zama auction platform. Please use a **non-smart wallet** for the auction. {% endhint %} {% endstep %} {% step %} ### Bidding ***Starts on January 21, 2026 at 8:00 AM UTC***\ ***Ends on January 24, 2026 at 8:00 PM UTC***\ ***Join the auction:*** [auction.zama.org](https://auction.zama.org) To place **sealed** bids, you have to use **Confidential USDT(cUSDT)** token. Bidding process: 1. **Shield USDT** * Use the "Shield" function in the auction app to convert standard USDT stablecoins 1:1 into **Confidential USDT(cUSDT)**, enabling encrypted bidding. * The shielding transaction is recorded onchain with the **amount publicly visible**, while all transactions using cUSDT afterwards remain **confidential**. 2. **Decrypt balance** * You can decrypt your cUSDT at any time to view your available balance in the auction application. * Only the wallet that shielded the USDT is allowed to decrypt balance. * After any transaction (e.g. shielding, placing a bid, updating a bid, or receiving a refund), your encrypted balance changes and thus requires a decryption to reflect the updated amount. 3. **Place bids** * Specify the **price** per token and token **amount** to submit a bid. * **The bids are sealed**: the price per token is public, while the token amount and total payment are encrypted with FHE. * You can submit up to **10** sealed bids {% hint style="warning" %} ### Invalid bids If the total value of a bid **exceeds** your available cUSDT balance, that bid will be **invalid** and the bidding funds will be returned. Invalid bids still count toward this limit. You should cancel them to free up the slots. {% endhint %} {% endstep %} {% step %} ### Resolution ***Starts on January 24, 2026***\ ***Ends on February 1, 2026*** After the auction closes, bids are filled from highest price to lowest. The lowest price at which a bid is filled becomes the clearing price. All participants who successfully bid above that price will thus end up paying the same clearing price. The entire calculation is performed using FHE. There are three possible outcomes: * Bid **above** the clearing price: User receives full allocation and a refund for any overpayment. * Bid **at the clearing price**: If quantity exceeds remaining supply at that exact price, user receives a *proportional(pro-rata)* share of tokens and a refund for the remainder. {% hint style="info" %} ### Pro-rata distribution When demand exceeds supply at the clearing price, allocations are split proportionally. **Example:** At the clearing price, 500 tokens remain. Alice requests 300 tokens, Bob 200 tokens, and Charlie 500 tokens (1,000 tokens requested in total). Each bidder receives a share of the remaining tokens proportional to their bid size: * Alice requested 300 / 1,000 = 30% → receives 150 tokens * Bob requested 200 / 1,000 = 20% → receives 100 tokens * Charlie requested 500 / 1,000 = 50% → receives 250 tokens The remaining portion of each bid is refunded. {% endhint %} * Bid **below** the clearing price: User receives no tokens and get a full refund. {% endstep %} {% step %} ### Claiming and refunds ***Starts on February 2, 2026 1pm UTC***\ ***Auction claim:*** [auction.zama.org](https://auction.zama.org) Once the resolution is finalized, all winners receive tokens at the same clearing price. Participants can claim both their $ZAMA tokens and the refund for unallocated funds. **$ZAMA token claim** Once settlement is complete, you can claim your won $ZAMA tokens: 1. Navigate to Results Go to the Results page where you can see your allocation. 2. Initiate Claim Click the "Claim" button to claim your $ZAMA tokens. 3. Approve Transaction Approve the transaction in your wallet to receive your tokens. **Refund claim** After claiming your $ZAMA tokens, you must separately claim your refund: 1. Click "Claim Refund": retrieve the fund from your unallocated cUSDT. 2. Approve Transaction: approve the refund transaction in your wallet. 3. Verify Balance: your refund is returned as shielded cUSDT tokens. After claiming, decrypt your balance to see the updated amount. **Bonus claim** If you were eligible for auction bonuses (bonus code, OG NFT holder, or Bron wallet), you will receive additional tokens directly at your claiming address. No action is required on your end. {% hint style="success" %} #### Other claims **Zama Community Sale claim** If you were eligible for Zama Community Sale and purchased $ZAMA token, navigate to [community-sale.zama.org/](https://community-sale.zama.org/) to claim your distribution. **Creator Program leaderboard reward claim** The rewards will be distributed shortly after TGE. **Third-party $ZAMA token claim** If you participated in auctions or presales on other platforms, such as CoinList, KuCoin, or the Binance Pre-TGE sale, please refer to their official announcements and platforms for claiming instructions. {% endhint %} {% endstep %} {% step %} ### What's next? All claimed tokens are fully unlocked and can be spent, transferred, staked or delegated to operators immediately. * Stake your $ZAMA token: [staking.zama.org](https://staking.zama.org/) * Unshield your confidential token: [unshield.zama.org](https://unshield.zama.org/) * Bridge $ZAMA to popular networks like BSC and SOLANA: [bridge.zama.org](https://bridge.zama.org/) * Buy more $ZAMA on exchanges: * **Kraken**: ; * **Binance**: * **Kucoin**: * **Bitget**: * **Coinbase**: * **Bybit:** * **PancakeSwap**: {% endstep %} {% endstepper %} ## Auction example Imagine there are 1,000 $ZAMA tokens to be sold, and that you have three people bidding: Alice, Bob and Charlie. ### Bidding phase * Alice bids 400 $ZAMA tokens at a price of $5 each. She pays $2,000 for it. * Bob bids 600 $ZAMA tokens at a price of $4 each. He pays $2,400 for it. * Charlie bids 300 $ZAMA tokens at a price of $3 each. He pays $900 for it.
### Clearing price and allocation At the end of the bidding period, the auction smart contract goes from the highest bid price to the lowest price to allocate tokens to each participant: * Alice is the highest bidder. She gets her 400 tokens. There are 600 tokens left to allocate. * Bob is the second highest bidder. He gets his 600 tokens. There are 0 tokens left to allocate. As such, the clearing price is what Bob bid at, i.e. $4 per token. * Charlie’s bid is under the clearing price, and thus he receives no allocation.
### Claiming tokens and refunds Now that the clearing price is defined, Alice, Bob and Charlie can claim their tokens and refund: * Alice receives 400 $ZAMA token and a refund for 400 $USD, corresponding to the difference between what she paid at $5 per token and the clearing price of $4 per token. * Bob receives 600 $ZAMA tokens and no refund, as he paid exactly the clearing price. * Charlie gets no $ZAMA tokens and a full refund of 900 $USD.
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