Token launches usually test two fragile promises at once: fair access and user privacy. Aztec Network, an Ethereum Layer 2 focused on confidentiality, is attempting to deliver on both by becoming the first project to sell its token through Uniswap Labs' new Continuous Clearing Auction (CCA). The move places the privacy L2 at the center of a live experiment in on-chain price discovery and zk-enabled compliance.
Key dates and the starting line
- Registration opens Thursday at 10 a.m. EST.
- Public bidding is scheduled for Dec. 2–6, 2025.
- The auction kicks off at a fully diluted valuation (FDV) of $350 million—described by the team as a 75% discount to Aztec Labs' most recent equity pricing.
To curb outsized allocations, Aztec and Uniswap say the auction will impose per-user participation limits. That design choice aims to broaden distribution while keeping everything verifiable on-chain.
What is the CCA and why it's different
The Continuous Clearing Auction is a suite of smart contracts built by Uniswap Labs with Aztec as a core contributor. Rather than opaque allocations or back-room pricing, bids clear transparently on-chain and in real time. The promise: a rules-based launch that narrows the gap between public participants and insiders by baking the mechanics into code.
Mechanically, the CCA stands apart from common crypto sale formats—such as fixed-price offerings, Dutch auctions, launchpad IEOs, or LBP-style distributions—by emphasizing continuous clearing and explicit per-user caps. If it works as intended, it could temper whale dominance without resorting to centralized gatekeepers.
Programmable privacy meets compliance
Aztec will fold in zero-knowledge proofs to handle sanctions screening without shipping personal data to a centralized database. According to the team, ZkPassport's circuits written in Noir—the zk language used within the Aztec ecosystem—enable eligibility attestations where sensitive details never leave the user's control.
Participants can confirm eligibility ahead of time and mint a soulbound NFT as proof of participation rights. That flow mirrors a growing design trend in crypto identity: attest first, reveal nothing, and selectively prove what's necessary when transacting.
Why this matters now
Privacy is moving up the priority stack in DeFi again. High-profile exploits like the Balancer incident renewed attention on operational security, while long-running privacy projects such as Zcash have kept the debate alive over how to reconcile confidentiality with transparency. Regulators and users alike are pressing for launches that protect personal data yet remain auditable and fair. A sale that combines open, on-chain bidding with zk-enabled compliance is a notable test case.
Market read: signals and trade-offs
- Valuation signal: A $350M starting FDV, framed as a deep discount to the last equity round, invites broader participation but also sets expectations for secondary price discovery.
- Distribution vs. Sybil risk: Per-user caps can widen ownership but may also incentivize multi-wallet behavior. How the eligibility flow and NFT gating deter abuse will be closely watched.
- On-chain credibility: If CCA clearing delivers smooth execution with transparent settlement, it could challenge Dutch auctions and LBP-style launches as the default for protocol token sales.
- Compliance by construction: ZK-based sanctions checks hint at a path where projects meet regulatory constraints without warehousing identity data.
About Aztec
Aztec Network is a privacy-focused Layer 2 built on Ethereum, reporting more than $8 million in total value locked. The team opened a public testnet on May 1 and has positioned the stack as a fully programmable privacy layer for smart contracts. Aztec Labs previously raised $100 million in a Series B led by a16z.
Who said what
Aztec co-founder Joe Andrews characterized the CCA approach as a break from insider-friendly launches, emphasizing on-chain rules, transparency, and broad access over special deals. The team underscored that the auction is non-custodial and permissionless, aligning with Ethereum's open participation model.
What to watch next
- Registration funnel: How many users complete eligibility checks and mint the soulbound NFT ahead of the sale.
- Execution quality: Gas costs, bot activity, and bid dynamics across the Dec. 2–6 window.
- Adoption curve: Whether other protocols adopt the CCA after Aztec's trial run.
- Regulatory reception: Market appetite for zk-based compliance workflows, particularly around sanctions screening.
How to prepare
Prospective participants should complete eligibility verification, mint the participation NFT, and review the auction parameters before bidding. With per-user caps in place, planning allocations and timing could matter as much as appetite.
If Aztec's launch lands as designed, it could mark a turning point for token sales: transparency that doesn't ask users to surrender their data, and privacy that doesn't require trusting a centralized gatekeeper.