There is a daily dose of innovation in the Zilliqa Ecosystem and a lot of exciting things are coming up in 2022.

Amrit Kummer expressed:  To all those who swear by bZIL, we have made great progress on the vault contract that will interface with the existing staking contract.

Basically, the way it will work is: Instead of staking directly with the staking contract, you will be staking indirectly via a vault contract (specific to you) which in turn will stake your ZIL on your behalf with the staking contract.

And for every ZIL you stake via the vault, you will be given 1 bZIL. These bZIL will have to be returned if you wish to take your stake out. The returned bZIL are burnt.

The base contract is almost ready. However, there are a couple of features that we would like to add that will allow a smooth transition from the current staking system (via the staking contract) to staking via the vault contract.

Once the contracts are ready, we will have to update the zillion staking frontend to make it easier for users to use the vault.

I think it took the industry about a year to realise that: 1) liquidity mining in the guise of valueless gov tokens only drives short-term liquidity. 2) staking cannot be the main utility of a token. Staking a token to earn more of the token comes at the expense of inflation.

Great to see some new mechanisms being deployed in the space and the idea that it is important to drive cashflow. The question is can we implement some of these ideas in some shape and form at the protocol-layer as well?

Community Queries:  bZil is very exciting indeed! Looking forward to seeing it live.

There will be some sort of penalty for not returning bzil? Or just zil locked without the possibility to get them back?

If changes haven’t been made, I believe it’s locked until you’re able to pay back your loan. Either by buying ZIL from the market or by paying with your staking reward.

Will I be able to trade bZIL? If so, wouldn’t this negate the supply shock effect due to staking assets?

Will we be able to use bZil in the liquidity pools of zrc2 tokens?

Goal is to use bZil anyway you like – buy ZRC-2 tokens, Provide liquidity, Participate in Token launch via Zilo for example, while you keep earning Zil with staking via vault. Let’s see how this turns out. This has potential to change the DeFi arena for Zilliqa.

I’ve been holding Zil for sometime now. I haven’t really kept up with the developments. What’s all this bZil and gZil?

Looks like in 2022 zil will introduce the benefits of decentralization and composability with bZIL.

2020 you went for gZIL instead of bZIL.  What now then?

And ZIL still has to go through a roughly 25% inflation rate till all the coins are minted. Meanwhile, gZIL will never ever experience inflation again.