Deep Dive
1. Mainnet Migration to Base (24 July 2025)
Overview: Horizen migrated its native ZEN token from its UTXO blockchain to Base as an ERC-20 asset, discontinuing its legacy mainchain and EON sidechain. This enabled integration with Base DEXs like Aerodrome and Uniswap.
Technical details:
- Layer 3 architecture: Built atop Base for EVM compatibility and wallet-level privacy via Singularity integration.
- Tokenomics: Circulating supply increased to 17.25M ZEN (from 16M), with 750K allocated to the DAO and 500K to the Foundation. Max supply remains 21M.
- Governance: ZenIP 42405 passed, formalizing DAO-led treasury management and a 5-year developer grant program.
What this means: This is bullish for ZEN because it unlocks DeFi liquidity, reduces transaction fees by ~90% compared to legacy chains, and positions Horizen as a privacy hub on Base. (Source)
2. Node Upgrade ZEN 5.0.7 (15 July 2025)
Overview: Final mandatory upgrade for nodes before migration, ensuring compatibility with Base transition.
Technical details:
- Deprecated ZEN 5.0.6: Nodes had to upgrade before 11 June 2025 block #1,783,180.
- No hard fork: Backward-compatible update focused on sunsetting legacy chain operations.
What this means: Neutral for ZEN – critical maintenance to phase out outdated infrastructure, but no new features added. Node operators faced a hard deadline to avoid service disruption. (Source)
3. Security Audits by Halborn/Cantina (July 2025)
Overview: Independent audits of migration smart contracts and claim tools found no critical vulnerabilities.
Technical details:
- Scope: Covered token migration logic, user claim workflows, and cross-chain bridge security.
- Key finding: Low-risk issues (e.g., gas optimizations) addressed pre-launch.
What this means: Bullish for ZEN because it reduces migration scam risks and builds trust in Horizen’s technical rigor. (Source)
Conclusion
Horizen’s codebase updates reflect a strategic pivot to Base-driven DeFi, prioritizing liquidity, developer adoption, and audit-backed security. While the migration introduces short-term complexity for legacy users, it positions ZEN for long-term growth in privacy-enabled applications. How quickly will developers leverage the new Layer 3 architecture to build differentiated privacy tools?