Deep Dive
1. Migration to Base (23 July 2025)
Overview:
Horizen migrated its native ZEN token to Base, converting it into an ERC-20 asset. This shift retired its legacy UTXO mainchain and EON sidechain, prioritizing EVM compatibility and liquidity on Ethereum-aligned DEXs like Aerodrome and Uniswap.
What this means:
This is bullish for ZEN because it unlocks deeper DeFi integration, reduces transaction costs via Base’s Layer 2 infrastructure, and improves accessibility for Ethereum-native developers. Users can now stake, trade, and leverage ZEN in privacy-focused DeFi strategies.
(Source)
2. Node Upgrade ZEN 5.0.7 (15 July 2025)
Overview:
Horizen released a mandatory mainnet node software update (v5.0.7), requiring all operators to upgrade by 11 June 2025 to avoid disruptions. The update focused on backend optimizations without protocol-level changes.
What this means:
This is neutral for ZEN as it ensures network stability ahead of the Base migration but doesn’t introduce new features. Node operators needed timely action to maintain consensus.
(Source)
3. DAO Governance Activation (15 July 2025)
Overview:
ZenIP 42411 proposed a decentralized treasury framework, allocating 3M ZEN to liquidity vaults on Base DEXs to generate passive yield and deepen liquidity.
What this means:
This is bullish for ZEN because it aligns incentives for long-term holders, improves market depth, and funds ecosystem growth without inflationary token sales.
(Source)
Conclusion
Horizen’s codebase updates reflect a strategic pivot toward Ethereum’s ecosystem, prioritizing scalability, governance, and DeFi integration. With ZEN now natively interoperable on Base, will its privacy-focused Layer 3 apps attract meaningful developer activity?