Latest Horizen (ZEN) News Update

Deep Dive

1. ZEN’s Base Migration Unlocks DeFi Privacy (14 August 2025)

Overview: Horizen completed its migration to Base, converting ZEN into an ERC-20 token and launching a privacy-focused Layer 3 appchain. The move integrates ZEN with Ethereum’s DeFi ecosystem (Aerodrome, Uniswap) while introducing zero-knowledge proofs and trusted execution environments for private transactions.

What this means: This is bullish for ZEN as it resolves prior isolation, granting access to Base’s 1M+ daily users and reducing fees by ~90% compared to Ethereum mainnet. Privacy features could attract institutional interest, though adoption depends on balancing compliance (KYC/AML) with anonymity. (The Defiant)

2. SEC Drops Case Against Horizen Labs (13 August 2025)

Overview: The SEC dismissed its lawsuit against Horizen Labs as part of a broader shift under Trump’s administration, ending a four-year legal battle over alleged securities violations.

What this means: Neutral to bullish for ZEN. While removing regulatory overhang, the dismissal lacks precedent-setting clarity. The project still faces scrutiny as a privacy coin, but partnerships with Coinbase-backed Base may mitigate future risks. (Yahoo Finance)

3. $5M Builder Grant for Privacy Tech (12 August 2025)

Overview: Horizen launched a developer program offering up to $5M in ZEN grants for projects building privacy-preserving AI, DeFi, and gaming tools on its Base appchain.

What this means: Bullish long-term, as funding could accelerate ecosystem growth. However, success hinges on attracting top-tier developers in a competitive ZK-proof market. Metrics to watch: grant-funded projects’ TVL and user activity by Q4 2025. (Horizen Global)

Conclusion

Horizen’s pivot to Base and regulatory reprieve position it as a privacy contender, but technical execution and developer traction will dictate momentum. Can ZEN’s stealth features carve a niche in DeFi’s transparent landscape?

TLDR Horizen’s codebase underwent major changes to migrate ZEN to Base as an ERC-20 token.

1. Base Migration Finalized (23 July 2025) – Legacy chain sunset, ERC-20 ZEN now live on Base.
2. Final Node Upgrade (15 July 2025) – ZEN 6.0.0 released to prepare for migration.
3. Security Audits Completed (June 2025) – No critical flaws found in migration tools.

Deep Dive

1. Base Migration Finalized (23 July 2025)

Overview: Horizen sunset its UTXO-based mainchain and EON sidechain, migrating ZEN to Base as an ERC-20 token. This enables integration with Ethereum DeFi ecosystems like Aerodrome and Uniswap.

The migration increased ZEN’s circulating supply from 16M to 17.25M (750K allocated to DAO, 500K to Foundation). Trading pairs went live on Base DEXs, with liquidity mining and privacy-focused Layer 3 features planned.

What this means: This is bullish for ZEN because it unlocks DeFi liquidity and simplifies developer adoption via Ethereum compatibility. However, the 13% price drop post-migration suggests short-term volatility as markets absorb the supply increase.
(Source)

2. Final Node Upgrade (15 July 2025)

Overview: ZEN 6.0.0 and EON 1.5.0 were the last updates for the legacy chain, requiring node operators to upgrade before the July 23 migration deadline.

The upgrade disabled new block production on the old chain, ensuring a clean transition. Users who delayed upgrading risked losing sync with the network during the migration window.

What this means: This neutral update was critical for sunsetting outdated infrastructure but had no direct user-facing benefits beyond ensuring migration readiness.
(Source)

3. Security Audits Completed (June 2025)

Overview: Halborn and Cantina audited migration smart contracts and claim tools, finding no critical vulnerabilities.

Audits focused on preventing supply inflation exploits and ensuring secure cross-chain claiming. Post-audit tweaks improved gas efficiency for ERC-20 transactions by ~18%.

What this means: This is bullish because robust security reduces risks during high-stakes migrations, though the lack of major flaws was already priced in pre-launch.
(Source)

Conclusion

Horizen’s codebase overhaul prioritizes Ethereum compatibility and DeFi integration, sacrificing its standalone blockchain for Base’s ecosystem. While technical execution appears smooth (audits, node upgrades), the true test lies in whether privacy-focused Layer 3 features can differentiate ZEN in Base’s crowded appchain landscape.

How will ZEN’s DAO-managed treasury balance liquidity mining incentives with long-term tokenomics stability?

Deep Dive

1. @horizenglobal: Exchange-backed migration to Base bullish

"KuCoin, Binance, and Tokocrypto will handle ZEN’s ERC-20 swap automatically for users."
– @horizenglobal (Official account · 2025-07-11 14:03 UTC)
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What this means: This is bullish for ZEN because seamless exchange support reduces user friction during the critical migration, minimizing sell pressure from confused holders.

2. @horizenglobal: 3M ZEN treasury pivot to DeFi bullish

"ZenIP 42411: No selling, only LP vaults on Base DEXs to grow liquidity and DAO yield."
– @horizenglobal (Official account · 2025-07-15 19:22 UTC)
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What this means: This is bullish because locking treasury tokens in liquidity pools could stabilize ZEN’s price while generating protocol-owned revenue – a deflationary mechanism if vault rewards outpace emissions.

3. @CoinMarketCap: Upbit halts ZEN withdrawals bearish

"Upbit suspended ZEN withdrawals citing ‘network termination,’ leaving holders stranded."
– @CoinMarketCap (News report · 2025-07-23 12:30 UTC)
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What this means: This is bearish because exchange freezes erode trust and suggest potential chain abandonment risks, though Horizen attributes it to the planned mainchain shutdown.

Conclusion

The consensus on ZEN is mixed: bullish momentum from its Base migration and institutional-grade exchange support clashes with operational risks like Upbit’s withdrawal freeze. Watch for the DAO’s treasury proposal vote results (ZenIP 42411) and weekly liquidity growth metrics on Aerodrome to gauge if the pivot to Base can offset legacy chain anxieties.

Deep Dive

1. Modular Proof Verification Layer Mainnet (Q1 2026)

Overview:
Following the ZenIP 42400 approval, Horizen’s proof verification layer – designed to reduce ZK proof costs by 90–95% – is slated for mainnet release. This modular component targets ZK rollups and dApps, leveraging Substrate for faster development.

What this means:
Bullish for ZEN as it positions Horizen as a cost-efficient ZK infrastructure provider. Risks include competition from established L2s like Polygon and delays in technical delivery (Horizen DAO).

2. Thrive x Horizen Developer Grants (2025–2030)

Overview:
A 5-year, 1M ZEN ($7.4M) program funds projects in private DeFi, zkML, and privacy gaming. Grants are milestone-based, with oversight from a 7-member Horizen advisory board.

What this means:
Neutral-to-bullish: Incentivizes ecosystem growth but depends on developer traction. Success could revive ZEN’s relevance; failure might signal weak product-market fit (CoinMarketCap).

3. Vault-Based Yield Strategies (Late 2025)

Overview:
Post-migration, Horizen plans liquidity vaults and single-sided staking on Aerodrome/Uniswap to capture AERO emissions and deepen ZEN’s DeFi utility.

What this means:
Bullish if liquidity grows, but bearish if APRs disappoint. Metrics to watch: ZEN/WETH pool TVL and AERO rewards distribution (The Defiant).

4. Grayscale Trust Support Review (December 2025)

Overview:
Grayscale’s Horizen Trust (OTC: HZEN) will reassess its backing of ZEN based on adoption metrics post-migration.

What this means:
Neutral: Continued support could attract institutional buyers, but a withdrawal might signal credibility loss. Monitor Grayscale’s Q4 2025 announcements.

Conclusion

Horizen’s pivot to Base unlocks DeFi integration but hinges on executing its ZK infrastructure vision and developer traction. With $ZEN down 13% post-migration (trading at $8.28 on August 20), will its privacy-focused appchain regain momentum as the modular narrative heats up?