> For the complete documentation index, see [llms.txt](https://docs.zetrix.com/zetrix-l2-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.zetrix.com/zetrix-l2-documentation/usage/tokenomics.md).

# Tokenomics

> \[!IMPORTANT] **The Z2 tokenomics model is still under discussion and not finalized.** This chapter documents the *current implementation* and flags open considerations. Treat forward-looking items as provisional.

## Current Implementation

| Aspect            | Current State                                                                                    |
| ----------------- | ------------------------------------------------------------------------------------------------ |
| Gas token         | L2 native unit, displayed with the `ZETRIX2` symbol. **Currently has no external value.**        |
| Purpose of gas    | Distributed to users (via the Faucet) so they can pay for transactions on Z2                     |
| Only valued token | **Wrapped Zetrix (wZETRIX)** — the ERC-20 representation of deposited/withdrawn L1 native ZETRIX |
| Bridging          | Native ZETRIX ⇄ wZETRIX via deposit (lock→mint) / withdraw (burn→unlock)                         |

* The gas unit exists purely so users can transact; it is **not** a value-bearing asset today.
* The Faucet distributes gas because users need it to use the chain (see [Faucet](/zetrix-l2-documentation/architecture/system-components.md#faucet)).
* The only token with actual value on Z2 is **wZETRIX**.
* **Watcher incentive:** honest Watchers that win a dispute earn a **reward** (see [Watcher](/zetrix-l2-documentation/architecture/system-components.md#watcher)). The reward's exact denomination and funding source are part of the open tokenomics discussion in [Future Tokenomics Considerations (Under Discussion)](#future-tokenomics-considerations-under-discussion).

## Gas Token & ZETRIX2 Symbol

The native gas unit uses the `ZETRIX2` display symbol. This is an implementation convenience and is **not** a statement of final tokenomics.

## Wrapped Zetrix

wZETRIX is the programmable (ERC-20-style) representation of ZETRIX on L2, enabling DeFi and contract composability. See [Chapters 9](/zetrix-l2-documentation/usage/wallet-configuration.md#wallet-configuration) and [Asset Flow](/zetrix-l2-documentation/usage/asset-flow.md#asset-flow).

## Future Tokenomics Considerations (Under Discussion)

* The native gas symbol/unit is `ZETRIX2` on Testnet; whether this (or another) ZETRIX-native denomination is adopted for Mainnet is still under discussion.
* Fee model (base fee, priority fee, L1 data-fee pass-through).
* Sequencer/validator incentives and reward distribution.
* Staking/bonding for Proposers, Validators, and Watchers (dispute bonds).
* Fee burn vs. treasury vs. redistribution policy.

> \[!NOTE] No decisions in [Future Tokenomics Considerations (Under Discussion)](#future-tokenomics-considerations-under-discussion) are final. The Z2 tokenomics model is not yet ratified.

***

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