Aztec Token Auction begins: What investors need to know about the extensive offering

On November 13, 2025, a new chapter opened for Aztec, a privacy-focused project in the Zero-Knowledge space. The project announced the launch of its large-scale public token issuance, attracting millions of potential participants. With 1.547 billion AZTEC coins—approximately 15% of the total supply—this is one of the most significant sales launches in the current crypto market.

Overview of the Auction: Fair Price Discovery and Broad Participation

Aztec Markets open with an innovative auction methodology that emphasizes genuine price discovery. The starting price was set at a $350 million fully diluted valuation—an impressive 75% below the valuation derived from the recent institutional funding round. This signals a deliberate market-friendly pricing approach.

Over 300,000 addresses received access to the whitelist and can now place their bids. The model includes a one-day exclusive phase for early adopters—launching on November 13 at 15:00 Central European Time. Starting December 2, the auction opens to all NFT holders, with the bidding phase running until December 6, 2025.

Who can participate? Qualification Criteria

The project intentionally focused on inclusion rather than exclusivity. Qualified participants are individuals who meet at least one of the following criteria:

• Sequencer or Proofer in the Aztec Testnet during the development phase
• ETH staking operators via recognized protocols (StakeCat, Obol, Rocketpool, Lido)
• Active users of the zk.money application
• Community members with proven activity
• Uniswap traders (3,000 randomly selected, who traded in the last 30 days)
• Nansen database subscribers at certain tier levels

Additionally, the top 200 node operators who demonstrated performance during the testnet phase are included.

The Auction Mechanism: Continuous Clearing Auctions

This token distribution is powered by the Continuous Clearing Auction (CCA) protocol, specifically developed by Uniswap for such scenarios. Aztec contributed with its ZK-Passport technology to enable private and verifiable participation.

The process works as follows: bids are placed during the auction window and then split within a block. Each split order is liquidated at the market-clearing price. After the auction concludes, a Uniswap V4 liquidity pool is automatically created at the determined rate—ensuring immediate secondary market liquidity.

Tokenomics: How 10.35 Billion Coins Are Distributed

The Aztec whitepaper sets the total issuance at 10.35 billion units. The allocation reflects a thoughtful design:

• 27.26% to investors and early supporters (institutional rounds)
• 21.06% to the core team (with vesting)
• 11.71% to the foundation
• 10.73% for ecosystem development grants
• 14.95% for this public auction (Phase 2)
• 1.93% for Genesis Sequencer sale (Phase 1)
• 2.44% for bilateral sales
• 2.64% into the Uniswap V4 liquidity pool
• 4.89% for future incentive programs
• 2.41% for Year-1 network rewards

The entire sale process involves 2.27 billion coins—almost 22% of the total supply.

What is the token used for? Three core functions

Sequencer Staking: The network is secured by validators who generate blocks. Token holders can stake their coins or delegate to active sequencers.

Governance: Holders can vote on changes to the Aztec protocol—from supply adjustments to network upgrades.

Transaction Fees: Once a smart contract execution environment is activated, users pay transaction fees in AZTEC, regulated by a burn mechanism similar to EIP-1559.

After twelve months, governance votes can adjust annual emissions within set limits.

Liquidity after the sale

The foundation plans to add 273 million tokens to the Uniswap V4 pool. The smart contract will automatically add additional coins proportionally to the ETH deposited. This pool will be locked under governance control for at least 90 days, after which the community will decide on any changes.

Tokens can later be listed on decentralized protocols and centralized exchanges.

The long road: 7 years of development

Aztec started in 2018 with a modest $2.1 million seed funding, followed by rounds in 2019. The mainnet went live in 2020. Series A in December 2021—raising $17 million under Paradigm leadership with Vitalik Buterin as a supporter—marked the rise during the ZK boom. Series B, with $100 million from a16z in December 2022, seemed to pave the way for success.

However, setbacks followed. In 2023, the project announced the shutdown of Aztec Connect—a privacy bridge product that was discontinued. In May 2025, the public testnet finally launched, attracting massive attention.

Surprisingly: the new tokenomics model does not include an airdrop—those who weren’t early participants now have to pay.

What does this mean for markets and investors?

With Bitcoin prices below $100,000 and increasingly bearish market signals, the central question is: how many actors will actually participate under the offered conditions? The test for Aztec begins now—not with the technology, but with the market test of its tokenomics.