Deep Dive
Overview: The Horizen DAO passed ZenIP-42408 with 100% community support, authorizing the return of a native staking mechanism. This creates a new way for holders to earn rewards directly within the ecosystem.
The proposal outlines a phased, long-term program designed to incentivize committed token holders rather than short-term speculators. It represents a major update to the network's tokenomics and incentive layer, moving beyond the initial migration phase.
What this means: This is bullish for ZEN because it introduces a direct utility for holding the token, which can reduce selling pressure and attract investors looking for yield. It also demonstrates strong, active governance from the community.
(Horizen)
2. Mainnet Launches as Layer-3 on Base (9 December 2025)
Overview: Horizen officially launched its mainnet as a Layer-3 rollup on Base, finalizing its transition from an independent blockchain. This allows developers to build Solidity-based apps with enhanced privacy features.
This architectural shift is the core of "Horizen 2.0." The codebase is now fully EVM-compatible, leveraging Base's infrastructure for security and lower fees. The legacy mainchain and EON sidechain were shut down as part of this migration.
What this means: This is bullish for ZEN because it integrates the project into the vast Ethereum and Coinbase ecosystem, drastically improving liquidity and accessibility for developers and users. It makes using ZEN faster and cheaper.
(The Defiant)
3. Developer Funding Program Announced (10 July 2025)
Overview: Horizen Labs announced a five-year, 1 million ZEN developer grant program managed by Thrive Protocol. The funds are allocated to specific verticals like private DeFi and AI, with milestone-based payouts.
This initiative was a key component of the migration strategy, designed to bootstrap the new appchain with useful applications. The funding draws from existing token allocations, meaning no new ZEN was minted, preserving the 21 million cap.
What this means: This is bullish for ZEN because it directly funds the creation of new products and services that will use the ZEN token, driving real-world utility and demand beyond mere speculation.
(CoinMarketCap)
Conclusion
Horizen's development trajectory shows a clear pivot from an isolated Layer-1 to a specialized, integrated privacy chain, backed by concrete programs for staking and developer growth. Will the new staking mechanics successfully lock in liquidity and stabilize the token's value?