At the second stage of its development, the Zylo ecosystem is launching its own token, ZYLO, which becomes a key element of the project’s internal economy and governance. It combines the functions of a utility and governance token while also serving as the primary payment method in the blockchain game CosmoFox.
Functions of the ZYLO Token
The main role of ZYLO is to support the gaming ecosystem. It is used for purchasing items in the premium store, acquiring rare resources, upgrades, and accelerating in-game progress. With the token, players can obtain unique skins, drilling effects, rare boosters, and ether crystals, which provide access to the most valuable items and gameplay features. In addition, the token can be used to pay for other products within the ecosystem.
Staking plays an equally important role: ZYLO holders can earn passive income ranging from 5% to 15% annually. On top of that, staking provides gaming benefits — accelerated energy regeneration, increased mining limits, and higher chances of rare finds. In this way, the token connects players’ financial motivation with in-game bonuses.
Economic Model and Supply
The token economy is built on the principle of limited supply. The maximum issuance is capped at 1 billion ZYLO, which prevents inflationary pressure. At the time of listing, only 154.7 million tokens (15.47%) will enter circulation, with the remaining supply gradually released according to the vesting schedule. This approach minimizes excess liquidity risks and supports a stable price.
Deflationary Mechanisms
To ensure long-term value growth, ZYLO incorporates a system of regular token burns. Each transaction is subject to a 2% fee, which is sent to a burn address. Additionally, 30% of premium store revenues are allocated to buyback and burn operations. The more active the players are, the stronger this deflationary mechanism becomes.
Governance and Community Involvement
ZYLO also functions as a governance token. Holders will be able to participate in DAO voting, shaping the development of the Zylo universe, leaderboard rules, and revenue distribution. This format encourages player engagement and turns them into co-creators of the ecosystem.
Token Distribution
The distribution model is designed to minimize “dump” risks and balance the interests of all participants. The team allocation has a 12-month cliff followed by a 24-month linear unlock. The Private Sale is vested over 12 months, while 20% of the supply is reserved for marketing and community growth. At the same time, liquidity for exchanges will be ensured immediately, with 10% of tokens unlocked at TGE.
Development Prospects
Thanks to its multifunctionality, limited supply, and well-designed tokenomics, ZYLO has the potential to become a sustainable tool for both players and investors. It merges gaming, financial, and governance functions, forming the foundation for the long-term development of the Zylo ecosystem and its flagship product — the CosmoFox game.
