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Zero1 Labs

Zero1 Labs (DEAI) — a reference card for a crypto project: what the product does and how verifiable the project’s key claims are; also — alignment with the Decentralized AI thesis (DecAI Fit).

Zero1 Labs — an AI/Privacy / AI/Infra project developing Cypher: an L3 blockchain protocol on Ethereum with Fully Homomorphic Encryption (FHE) integrated into the EVM (fhEVM), in order to perform computations on encrypted data (including the claimed AI computations) without revealing the plaintext. The DEAI token is represented as an ERC‑20 on Ethereum (SSOT — Etherscan) and is described in the documentation as the gas/staking/governance token for the Cypher network.

Disclaimer

Important: this page is a reference overview of the project. Within DecAIHub, we separately record a verification based on open sources within the AI thesis (what is real AI/onchain/why a token, and which sources this is based on).
This is not financial advice and not a recommendation to buy/sell/hold any asset. We do not assess price, returns, or entry/exit timing.
Conclusions are based on publicly available materials found as of the verification date. The absence of confirmation does not imply the absence of the technology.

TL;DR (for readers who are not into AI)

  • What it is: blockchain infrastructure (L3) for private computations on data (including AI cases) with an FHE extension of the EVM.
  • Who it’s for: dApp developers who need private data processing/analytics/ML scenarios without revealing the input data.
  • Why onchain/token: onchain is needed to make computations and data access part of smart contracts and verifiable execution; the DEAI token is used as gas/staking/governance (per the docs).

How it works (very briefly)

  1. The developer does: writes Solidity contracts that work with fhEVM encrypted types/operations and deploys them to the Cypher environment.
  2. The network does: executes operations on ciphertext (arithmetic/logic/comparisons, etc.) without decryption; for re‑encryption/decryption scenarios, gateway/KMS components are used (per the technical description).
  3. The user gets: the ability to build private applications (finance/healthcare/analytics) and the claimed AI computations on encrypted data.
  4. Where the blockchain is: computations and access control (ACL) are integrated into smart contracts; the DEAI token exists as an ERC‑20 (Ethereum) and is described as the gas token of the Cypher network.
  5. Token role: gas/fees, staking for PoS security, and governance (per the tokenomics docs).

Quick links: AI thesis fit

Project passport

Field Value
Project name Zero1 Labs
Also known as (aliases) Zero1, z1labs, DEAI, Cypher
Logo (logo) ../assets/227_zero1-labs_logo.png
Token symbol (ticker) DEAI
Category AI/Privacy | AI/Infra
Primary chain (chain) Ethereum
Type EVM
Network status mainnet
Consensus (consensus) PoS (Cypher network)
Launch date (launch_date) —
Project status (status) active (docs + repositories + token)
Token (standard) ERC-20
Token contract 0x1495bc9e44Af1F8BCB62278D2bEC4540cF0C05ea
Token model (token_type) utility (governance)
Max supply 1,000,000,000 DEAI (Etherscan Max Total Supply)
Issuance deflationary mechanisms (partial fee burn + validator penalties; per the docs)
Tokenomics (tokenomics, brief) DEAI = gas token of the Cypher network; staking for security; governance; partial fee burn (per the docs)
Governance governance via the token (per the docs; process details not disclosed)
Admins/keys —
Audit Hacken (project page; audit details are not disclosed on the public page)
Bug bounty —
Team (team) —
Funding (investors/funding) —
AI component (ai_component) FHE-EVM for private AI computation
Use‑case (use_case) private compute over encrypted data
DecAI Fit — AI thesis fit 5/6 — high alignment with the Decentralized AI thesis
DecAI Fit component summary 2 / 2 / 3 / 3
Last verified 2026-02-11

General project overview

In its official documentation, Zero1 Labs describes Cypher as an L3 protocol on Ethereum with an integrated fhEVM (Fully Homomorphic Encryption EVM). The key idea: perform computations on data that remains encrypted during execution, in order to reduce the risk of leaks and make privacy‑critical scenarios possible.

From the “DecAI” perspective, this looks like an infrastructure attempt to combine data privacy and “AI‑driven dApps” (the docs explicitly mention “on‑chain execution of machine learning models on encrypted datasets”). At the same time, the open materials contain no reproducible model quality metrics — the focus is specifically on cryptography/VM/architecture.

Features/modules

  • fhEVM + encrypted types/operations: execution of computations on ciphertext without decryption (docs).
  • Layer 3 architecture: “encrypted rollups”, state proofs and privacy‑oriented EVM extensions (docs).
  • Gateway/KMS/ACL components: access management for ciphertext, decryption/re‑encryption requests (GitHub README).
  • Tokenomics V2: DEAI as gas/staking/governance and the claimed deflationary mechanics (docs).

Typical scenarios

  • Scenario 1 (private dApps): a developer stores/processes sensitive data onchain as ciphertext → obtains computations without revealing the plaintext.
  • Scenario 2 (AI analytics): an application runs computations/analytics on encrypted datasets → per the docs’ claims, this is suitable for privacy‑preserving AI inference/analytics.
  • Scenario 3 (validator/staker): a participant stakes DEAI for PoS security and rewards (per the token utility).

Getting started (wallet/network)

  • What you need: access to the docs and dev tools; for onchain operations — an EVM wallet.
  • Network/chain: Ethereum (the DEAI token as an ERC‑20); Cypher is described as an L3 on Ethereum.
  • Fees: Ethereum fees for ERC‑20 operations; Cypher network fees depend on the implementation of “DEAI as the gas token” (per the docs).

Architecture/tech (non‑AI)

  • Components: L3 (Cypher) + a modified EVM client/FHE integrations; precompile contracts (ACL/TFHE executor/KMS verifier/gateway); offchain gateway/KMS services (GitHub).
  • Participant roles: contract developers; validators/delegators (PoS — per the token utility); application users.
  • Where logic runs: fhEVM computations — onchain (within the protocol); KMS/gateway serve decryption/re‑encryption requests (hybrid design — per the README).
  • Dependencies: FHE cryptographic libraries (TFHE), key/relayer infrastructure (gateway/KMS).

Token/economics (expanded, no forecasts)

  • Token utility: DEAI is claimed as the gas token of the Cypher network, as well as a staking/gov token (token utility).
  • Protocol necessity drivers: if DEAI is the native gas and PoS collateral, then without it the protocol cannot operate in the claimed model.
  • Who pays fees: network users (gas/fees).
  • Where fees go: part of the transaction and staking fees is described as burned (token utility).
  • Issuance/burn: the token distribution describes dynamic management of issuance vs burn (“deflationary net effect over time”).
  • Security/incentive mechanisms: staking for validators/delegators; penalties for downtime/malicious activity (partially burned) — per the token utility.
  • Distribution and token issuance schedule: the token distribution mentions that certain tranches for validators/contributors, etc. start vesting no earlier than 2026‑03‑20.
  • Treasury: —.

Governance

  • Who makes decisions: token holders (governance — per the token utility).
  • How protocol parameters change: via governance procedures (details not disclosed).
  • Where decisions are discussed/made: public channels (X/Discord/Telegram) + docs.
  • Keys/multisig: —.

Security and incidents

  • Audits: the Hacken “Zero1 Labs” page (without report details on the public page).
  • Bug bounty: —.
  • Incidents: —.
  • Threat model: risks of FHE cryptography/implementations, risks of KMS/gateway centrality, risks of leaks during onchain decryption (the README explicitly notes that decrypted data becomes public).

Project status and timeline

  • Current status: active documentation and repositories; the DEAI token on Ethereum.
  • Key releases/milestones: —.
  • Roadmap: —.

Ecosystem/integrations

  • Integrations: Solidity/Hardhat (in the examples), EVM tools; the Cypher repositories and related SDKs/contracts.
  • Partners: —.
  • Where it’s actually used: as dev infrastructure/protocol (per the docs), without public KPIs.

AI component of the project

  • What is real AI here? Tier‑1 sources focus on infrastructure for private computations; the docs explicitly claim “on-chain execution of machine learning models on encrypted datasets”, but without benchmarks or demos of specific models.
  • What is truly onchain? the DEAI ERC‑20 token (Ethereum); the concept of fhEVM/contracts performing operations on ciphertext is described as onchain execution (within the protocol).
  • Why is a token needed? DEAI is claimed as the network’s gas token, staking collateral and governance token; burn mechanics from fee flows are also described.
  • Red flags (based on the information found): AI‑washing (few verifiable AI artifacts/metrics), “hybrid trust” around KMS/gateway, the risk of data disclosure during onchain decryption.

DecAI Fit component summary

  • DecAI Fit: 5/6 — high alignment with the Decentralized AI thesis
Component Level Score
AI reality medium 2
Onchain necessity medium 2
Token necessity medium 3
Evidence Tier‑1 present 3
Details

AI reality

AI_0 — AI intent (Tier‑1 roadmap) (1/0)

  • AI_0 (decision): 0
  • Claim (one line): There are signs of AI reality per Tier‑1 (see AI_1..AI_4), so the AI_0 flag (intent‑only) does not apply.
  • Evidence: Tier‑1 — see Evidence/links in AI_1..AI_4.
  • Why sufficient / why not (one line): AI_0=1 is admissible only when AI_1..AI_4=0; here ai_score without AI_0 = 2.
  • Conflict note (if any): none.

AI_1 — what the AI does (1/0)

  • AI_1 (decision): 1
  • Claim (one line): execution of ML/AI computations on encrypted datasets/state is claimed (privacy‑preserving AI).
  • Evidence: Tier‑1 — https://docs.z1labs.ai/introduction/key-features-and-technical-advantages
  • Why sufficient / why not (one line): the docs directly formulate the AI use case, but without specific models/replications.
  • Conflict note (if any): none.

AI_2 — demos/examples (1/0)

  • AI_2 (decision): 0
  • Claim (one line): no Tier‑1 demo artifact showing a working AI module/metrics (rather than just technical descriptions/code) was found.
  • Evidence: Tier‑1 — https://github.com/z1labs/Cypher ; https://docs.z1labs.ai/
  • Why sufficient / why not (one line): the repository and docs describe the infrastructure but do not provide a verifiable ML model demo.
  • Conflict note (if any): none.

AI_3 — metrics/quality (1/0)

  • AI_3 (decision): 0
  • Metrics: —.
  • Context (version/date/how measured): —.
  • Evidence: Tier‑1 — https://docs.z1labs.ai/
  • Why sufficient / why not (one line): quality metrics of AI models and/or performance benchmarks of FHE execution are not published as verifiable numbers.
  • Conflict note (if any): none.

AI_4 — tech description/architecture/versions (1/0)

  • AI_4 (decision): 1
  • Claim (one line): the fhEVM/Layer3 approach, operations on ciphertext and the key components (ACL/gateway/KMS) are described.
  • Evidence: Tier‑1 — https://docs.z1labs.ai/introduction/key-features-and-technical-advantages ; https://raw.githubusercontent.com/z1labs/Cypher/main/README.md
  • Why sufficient / why not (one line): this is sufficient for a high‑level understanding of the architecture.
  • Conflict note (if any): none.

Onchain necessity

OC_1 — contracts/addresses/chain (1/0)

  • OC_1 (decision): 1
  • Chain: Ethereum mainnet (the DEAI ERC‑20 token)
  • Addresses/identifiers: DEAI: 0x1495bc9e44Af1F8BCB62278D2bEC4540cF0C05ea
  • Evidence: Tier‑1 — https://etherscan.io/token/0x1495bc9e44Af1F8BCB62278D2bEC4540cF0C05ea
  • Why sufficient / why not (one line): Etherscan confirms the contract and max supply.
  • Conflict note (if any): none.

OC_2 — onchain beyond just a token (1/0)

  • OC_2 (decision): 0
  • What useful logic is onchain: there are no onchain SSOT addresses/contracts (other than the ERC‑20 token) for fhEVM/gateway/ACL on a production network; there is an architectural description and code.
  • Evidence: Tier‑1 — https://docs.z1labs.ai/ ; https://github.com/z1labs/Cypher
  • Why sufficient / why not (one line): without addresses, the “set of contracts” cannot be counted as a verified onchain fact.
  • Conflict note (if any): none.

OC_3 — onchain is critical (1/0)

  • OC_3 (decision): 1
  • “Replace the blockchain” test: without onchain execution, the ability to make private computations part of smart contracts/ACL policies and network consensus disappears (by fhEVM design).
  • Evidence: Tier‑1 — https://docs.z1labs.ai/introduction/key-features-and-technical-advantages ; https://raw.githubusercontent.com/z1labs/Cypher/main/README.md
  • Why sufficient / why not (one line): the onchain layer is the core of the product (it is a blockchain protocol).
  • Conflict note (if any): logically, private computations are possible offchain, but that is a different trust model.

Token necessity

TK_0 — no token (1/0)

  • TK_0 (decision): 0
  • Claim (one line): the project has a token, DEAI (ERC‑20).
  • Evidence: Tier‑1 — https://etherscan.io/token/0x1495bc9e44Af1F8BCB62278D2bEC4540cF0C05ea
  • Why sufficient / why not (one line): the existence of the token is confirmed by the explorer.
  • Conflict note (if any): none.

TK_1..TK_4 (1/0)

TK_1 — payment for the service (1/0)

  • TK_1 (decision): 1
  • Claim (one line): DEAI is claimed as the gas token for Cypher Network.
  • Evidence: Tier‑1 — https://docs.z1labs.ai/tokenomics-v2/usddeai-token ; https://docs.z1labs.ai/tokenomics-v2/token-utility
  • Why sufficient / why not (one line): the token utility directly states “Gas Token for Cypher Network”.
  • Conflict note (if any): the ERC‑20 representation on Ethereum may differ from the L3 “native gas” in the implementation (not disclosed).

TK_2 — incentives/collateral/penalties (1/0)

  • TK_2 (decision): 1
  • Claim (one line): validators/delegators lock DEAI as collateral; penalties for downtime/malicious activity and burn mechanics are described in the token utility.
  • Evidence: Tier‑1 — https://docs.z1labs.ai/tokenomics-v2/token-utility
  • Why sufficient / why not (one line): the token utility describes staking/penalties and burn.
  • Conflict note (if any): specific parameters and contract addresses are not provided.

TK_3 — governance (1/0)

  • TK_3 (decision): 1
  • Claim (one line): DEAI holders receive voting rights for protocol upgrades/parameter adjustments/ecosystem decisions.
  • Evidence: Tier‑1 — https://docs.z1labs.ai/tokenomics-v2/token-utility
  • Why sufficient / why not (one line): the governance role is described in the token utility.
  • Conflict note (if any): no link to an onchain governance platform/contract.

TK_4 — token is replaceable (1/0)

  • TK_4 (decision): 0
  • Claim (one line): the token is built into the network design as gas + staking collateral + governance, i.e. it is not “bolted on from the outside”.
  • Evidence: Tier‑1 — https://docs.z1labs.ai/tokenomics-v2/token-utility
  • Why sufficient / why not (one line): the token’s role is described as fundamental for security and transaction payment.
  • Conflict note (if any): none.

Evidence (table)

Tier Source What it proves
Tier‑1 https://docs.z1labs.ai/ Description of Cypher as an L3 on Ethereum with FHE/fhEVM for computations on ciphertext.
Tier‑1 https://docs.z1labs.ai/introduction/key-features-and-technical-advantages Claims about privacy‑preserving AI (on‑chain execution of ML models on encrypted datasets), key properties (confidentiality/scaling/efficiency).
Tier‑1 https://docs.z1labs.ai/tokenomics-v2/usddeai-token The role of DEAI as the core economic unit: gas token/PoS/gov + deflationary mechanics and vesting updates.
Tier‑1 https://docs.z1labs.ai/tokenomics-v2/token-utility DEAI utility: gas, staking, governance, node access, burn/penalties.
Tier‑1 https://docs.z1labs.ai/tokenomics-v2/token-distribution Distribution/vesting (including “tranches no earlier than 2026‑03‑20”) and emission control.
Tier‑1 https://raw.githubusercontent.com/z1labs/Cypher/main/README.md Architecture/components (gateway/KMS/ACL), an explanation of FHE computations and contract examples.
Tier‑1 https://etherscan.io/token/0x1495bc9e44Af1F8BCB62278D2bEC4540cF0C05ea The DEAI token contract (ERC‑20), max supply 1B, decimals and holder metrics.
Tier‑1 https://hacken.io/audits/zero1-labs The existence of a Hacken audit page for the project (without report details on the public page).
Tier‑1 https://z1labs.ai/litepaper.pdf The whitepaper is listed in the explorer, but the URL is unavailable (404).

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