LayerZero launches Zero: what you need to know about the new blockchain

LayerZero Labs is preparing to launch its own blockchain, Zero, along with a trading platform called lzATLAS. The launch is scheduled for November 30, 2026. The developers aim to build a high-performance infrastructure for trading digital and traditional assets, with the ZRO token playing a central role in the new ecosystem.

The project's primary goal is to integrate trading, clearing, and settlement into a single blockchain-based system. In the future, this infrastructure could be used in markets with daily trading volumes exceeding $1 trillion.

After Zero announced its upcoming launch, the ZRO token surged nearly 10%, reaching $2.04. Since August, the asset has gained more than 160%, recovering from a prolonged decline. However, ZRO remains significantly below its all-time high of approximately $7.50, recorded shortly after the token entered the market in 2024.

What is LayerZero?

LayerZero is a cross-chain interoperability protocol that enables communication between independent blockchains. This technology lets different networks exchange information and digital assets without relying on shared infrastructure.

Since its inception, the protocol has facilitated nearly $250 billion in transactions. The project's native token, ZRO, entered circulation in June 2024.

LayerZero Labs has also attracted considerable interest from major investors. The company's total funding is estimated at approximately $261 million, excluding Tether's new investment in the Zero project.

Its investors include Andreessen Horowitz (a16z), Sequoia Capital, Samsung Next, Circle, OpenSea, and the venture capital arm of Christie's auction house. Overall, more than 30 investors have backed the project's development.

Zero blockchain: high performance and a focus on financial markets

Zero was first unveiled in February 2026, when LayerZero Labs introduced the project as a technological foundation for bringing financial operations on-chain.

One of the new network's main advantages is expected to be its performance. Initially, the developers claimed Zero could process up to 2 million transactions per second, with transaction fees below $0.01.

However, during its initial phase, the blockchain's throughput will be approximately 200,000 transactions per second. The developers plan to increase this capacity as the infrastructure evolves gradually.

Zero is positioned as a universal environment for transactions involving various asset classes, including tokenized financial instruments. Its developers expect the network to deliver the speed and efficiency required to support large-scale financial markets.

The project's ambitions are reflected in the involvement of major companies from the financial and technology sectors. Organizations partnering with LayerZero on the development of Zero include:

• Citadel Securities — one of the world's largest market makers, providing liquidity across financial markets.
• ARK Invest — a US investment management firm specializing in innovative technologies and emerging industries.
• Depository Trust & Clearing Corporation (DTCC) — a US financial services organization providing clearing, settlement, and custody services for securities transactions.
• Google Cloud — Google's cloud computing division, offering computing infrastructure and artificial intelligence tools.
• Intercontinental Exchange (ICE) — a US-based exchange holding company that operates several financial marketplaces, including the New York Stock Exchange (NYSE).

However, the involvement of major organizations does not mean they have already migrated their operations to the new blockchain. According to the developers, institutional participants are currently testing the infrastructure's capabilities.

Nevertheless, the team claims Zero could provide the technological foundation for bringing the global economy onto the blockchain.

lzATLAS trading platform

The first major product built on Zero will be lzATLAS, an infrastructure solution designed to facilitate trading and settlement.

At launch, the system is expected to support more than ten trading venues, with the number potentially increasing before year-end.

Users will be able to access the infrastructure through third-party services offering their own trading interfaces.

The name ATLAS stands for Aggregated Trading, Liquidity and Settlement.

The platform's defining feature is the integration of three core processes:

• Order matching — identifying and matching compatible buy and sell orders.
• Clearing — determining and confirming the obligations of parties involved in a transaction.
• Settlement — completing the final transfer of assets between the parties.

In traditional financial markets, these functions are often handled by separate organizations. The developers of lzATLAS propose combining them within a single technological system, potentially reducing costs and accelerating transaction processing.

In the long term, LayerZero Labs is exploring the possibility of deploying this technology in major financial markets, including the US stock and government bond markets.

The role of the ZRO token

Zero's economic model is built around ZRO. The token will serve not only as the network's primary asset but also as an essential component of its security, governance, and fee revenue distribution mechanisms.

The developers identify three primary functions of ZRO:

1. Network security. The token will be used in a Delegated Proof-of-Stake (DPoS)* consensus mechanism, allowing participants to delegate their tokens to validators.
2. Transaction fees. ZRO is intended to be used to pay transaction fees within the blockchain.
3. Governance participation. Token holders can influence the protocol's development through designated voting mechanisms.

* Delegated Proof-of-Stake (DPoS) is a blockchain consensus mechanism in which token holders delegate their voting power to selected validators. Validators verify transactions, produce new blocks, and maintain network security. In return, they may receive rewards and distribute a portion to participants who have delegated their tokens.

The developers have also placed particular emphasis on the fee distribution system and mechanisms designed to reduce ZRO's circulating supply.

Trading venues using Zero's infrastructure will be eligible to receive rebates ranging from 20% to 65% of the fees they pay. The rebate percentage will depend on the platform's trading activity and the amount of ZRO locked in staking*.

* Staking is the process of locking cryptocurrency within a blockchain network or specialized protocol to participate in its operations and earn rewards or additional benefits. Depending on the project's structure, staking may be used to secure the network, generate returns, or reduce trading fees.

The remaining fee revenue, after rebates, will be distributed as follows:

• 25% will be allocated to market makers that provide trading liquidity.
• 75% will be used to buy back* ZRO tokens and subsequently burn* them.

* Buyback is a mechanism through which a cryptocurrency project purchases its own tokens on the open market using a portion of its revenue or specially allocated funds. Repurchased tokens may be held in reserve, redistributed among participants, or permanently removed from circulation through burning.

* Token burning is the process of permanently removing cryptocurrency tokens from circulation. This is typically accomplished by sending tokens to a special address with no accessible private key or through a smart contract. Burning reduces the available token supply and, if demand remains stable or increases, may positively impact the token's market value.

This model is designed to link the token's economic performance to actual network activity. The more transactions processed through Zero, the more revenue can be allocated to ZRO buybacks and burns.