What is Horizen (ZEN)?

Deep Dive

1. Privacy-First Technology Stack

Horizen combines zero-knowledge proofs (ZKPs) and trusted execution environments (TEEs) to enable private transactions and data handling. Unlike earlier privacy coins, Horizen 2.0 focuses on modular privacy layers for apps, allowing developers to embed privacy into smart contracts without deep cryptographic expertise. Its Layer 3 deployment on Base leverages Ethereum’s security while reducing costs and latency (Horizen Docs).

2. Transition to Base and ERC-20 Standard

In July 2025, Horizen migrated to Base (Coinbase’s Ethereum L2), converting ZEN into an ERC-20 token. This shift improves liquidity, interoperability with Ethereum DeFi apps, and access to Base’s 1M+ daily users. The legacy Horizen mainchain was sunsetted, prioritizing integration into Ethereum’s ecosystem for broader utility (The Defiant).

3. Tokenomics and Governance

ZEN has a fixed supply of 21 million tokens, with 5 million unminted tokens earmarked for ecosystem growth. The Horizen DAO governs upgrades and treasury management via Zen Improvement Proposals (ZenIPs), emphasizing decentralized decision-making. ZEN is used for:
- Governing privacy protocols.
- Paying for services in privacy-enabled apps.
- Funding developer grants and liquidity pools.

Conclusion

Horizen is redefining privacy in Web3 by merging Ethereum’s security with modular privacy tools, enabling developers to build compliant, private applications. With its DAO-driven model and Base integration, ZEN aims to become a cornerstone of privacy-first DeFi and beyond. What innovative use cases will emerge as Horizen’s privacy tech becomes a standard for Web3?