Zapper plans utility token for new protocol focused on on-chain data

DeFi aggregator and portfolio management tool Zapper has introduced what’s known as Zapper Protocol, aiming to incentivize the interpretation and contextualization of on-chain data.

The platform also plans to roll out a native ZAP token in the fourth quarter of 2024.

“Our vision of the future is one of onchain literacy,” Zapper stated on X. “By making Ethereum readable, we're revealing to everyone what it truly is. Ethereum is a social network, and we're surfacing it.”

Zapper has developed indexing templates that are designed to simplify the indexing process of on-chain data—enabling users to understand data without advanced coding skills.

Today’s launch reveals the first part of Zapper Protocol, which is the interpretation layer. Zapper said the layer will allow users to contribute as two types—event interpreters and position interpreters. Event interpreters would turn complicated blockchain transaction data into readable format, while position interpreters add missing positions or balances to Zapper.

The project will reward data interpretations and enable payments for data access with ZAP utility tokens.

Zapper, founded in 2020, previously raised its $15 million Series A round led by Framework Ventures in 2021, with notable participants including Mark Cuban and Ashton Kutcher’s Sound Ventures.