Confidential token distribution, powered by Fully Homomorphic Encryption.
Recipient addresses are public. Amounts are not.

VeilDrop lets you distribute tokens to any number of recipients with fully encrypted allocations. No one — not block explorers, not other recipients, not even VeilDrop itself — can see how much each address received. Only the recipient, using their wallet, can decrypt their own allocation.

This makes VeilDrop suitable for:

• Payroll — pay contributors without leaking salary data on-chain
• Grants — distribute grant amounts privately
• Investor allocations — fund rounds without revealing per-investor token amounts
• Airdrops — drop tokens to a community without public enumeration of amounts

Confidentiality is enforced at the protocol level using Zama's Fully Homomorphic Encryption (FHE), via the ERC-7984 confidential token standard. VeilDrop integrates with the TokenOps SDK and ships its own ERC-7984 demo token, vCTT (VeilToken).

Testnet only — VeilDrop currently runs on Ethereum Sepolia testnet.

VeilDrop supports three on-chain distribution strategies, both powered by @tokenops/sdk:

Admin sends tokens to all recipients in a single transaction. Recipients receive tokens automatically — no action required on their end. The admin pays gas for the full distribution.

Admin funds a pool and signs a per-recipient claim authorization off-chain. Recipients receive a stateless claim link containing their encrypted payload, and claim on their own schedule. No backend required — the full claim data is encoded in the URL.

Admin funds a vesting contract with linear unlocking schedules. Recipient claims unlocked tokens gradually over time. Only the recipient can decrypt their own vesting progress and claimable amounts.

• Node ≥ 22 (required by @zama-fhe/sdk — see .nvmrc)
• pnpm
• A browser wallet (MetaMask or compatible) connected to Sepolia

# Use the correct Node version
nvm use

# Install dependencies
pnpm install

# Start the dev server
pnpm dev

Open http://localhost:3000, connect your wallet on Sepolia, and mint testnet tokens from the /faucet before creating a distribution.

# .env
DATABASE_URL="postgresql://user:password@host:5432/dbname"

DATABASE_URL is required, VeilDrop uses Postgres (via Prisma) for distribution history, recipient claim state, drafts, and the address book. Any Postgres works, including a local instance or a free tier on Neon or Supabase.

# .env.local, optional
NEXT_PUBLIC_SEPOLIA_RPC_URL=https://your-rpc-endpoint

npx prisma migrate dev

Applies the schema in prisma/schema.prisma and generates the Prisma client.

Encryption and decryption go through @zama-fhe/react-sdk's ZamaProvider. The provider only mounts after a wallet is connected on Sepolia. Components that call Zama hooks must gate on useIsZamaReady() (see app/providers.tsx) — not just isConnected — to avoid mounting before the provider is ready during the connection handshake.

lib/encryptor-adapter.ts bridges a shape mismatch between @tokenops/sdk and @zama-fhe/sdk at their currently published versions:

• @tokenops/sdk's Encryptor expects { handles: Uint8Array[], inputProof: Uint8Array }
• @zama-fhe/[email protected]'s relayer returns { encryptedValues: Hex[], inputProof: Hex }

This adapter is required, not optional.

Wallet-mode Disperse requires two separate approvals:

1. Each subwallet must approve the Disperse singleton via register() / useApproveTokenOnWallets
2. The admin's own balance must separately approve the singleton as operator via useConfidentialSetOperator

Skipping the second step reverts on-chain with ERC7984UnauthorizedSpender.

The contracts/ workspace contains the VeilToken ERC-7984 source. See contracts/contracts/VeilToken.sol.

Sepolia deployment: 0x1c20CeC11BbfDB19f88450569Ed7a98A7a670A42

Built on Zama FHE · TokenOps SDK