Deep Dive
1. Mainnet Launch as Base Layer 3 (9 December 2025)
Overview: This was the culmination of Horizen's migration from its own proof-of-work Layer 1 blockchain to an Ethereum Virtual Machine (EVM)-compatible Layer 3 rollup on Base. For users, this means ZEN is now an ERC-20 token with access to Ethereum's vast DeFi ecosystem, lower fees, and faster transactions.
The technical shift involved shutting down the legacy Horizen mainchain and EON sidechain. The new architecture uses the OP Stack, allowing Horizen to batch transactions to Base for settlement, inheriting Ethereum's security. This required a complete codebase overhaul to support Solidity smart contracts and integrate with Base's infrastructure, including oracles and indexing services. The new ERC-20 contract address is 0xf43eB8De897Fbc7F2502483B2Bef7Bb9EA179229.
What this means: This is bullish for ZEN because it makes the token much more usable and liquid, connecting it to a massive pool of users and capital on Ethereum and Base. Users benefit from cheaper and faster transactions while developers can build using familiar Ethereum tools.
(The Defiant)
2. Staking Program & Yield Integration (April 2026)
Overview: Following the migration, a new staking program went live, replacing the old proof-of-work mining model. This update in the network's consensus code allows users to earn rewards by staking ZEN, with yields reportedly surging from below 1% to over 24%.
This change is part of implementing the new tokenomics defined in ZenIP 42407, which reallocates block rewards to stakers (collators/delegators), the Horizen Foundation, and the DAO Treasury. The codebase update enables a proof-of-stake mechanism where users can delegate ZEN to validators to secure the network and earn passive income.
What this means: This is bullish for ZEN because it creates a strong incentive to hold and use the token, potentially reducing sell pressure. For holders, it offers a new way to generate passive income directly from their assets, making ZEN more attractive as a long-term holding.
(StakingCrypto.io)
3. Developer Grant Program Launch (10 July 2025)
Overview: Announced alongside the migration plans, this initiative allocated 1 million ZEN from the existing treasury to fund privacy-focused applications over five years. While not a direct code commit, it represents a major strategic update that drives future codebase development by incentivizing builders.
The program is managed by Thrive Protocol and targets specific verticals like confidential DeFi and privacy-preserving AI. Funding is released in stages tied to project milestones like mainnet deployment and user growth, ensuring development funds are tied to tangible progress and code delivery.
What this means: This is bullish for ZEN because it directly fuels ecosystem growth. By financially supporting developers, Horizen increases the chances of innovative, privacy-focused applications being built on its new chain, which in turn drives utility and demand for the ZEN token.
(CoinMarketCap)
Conclusion
Horizen's recent codebase evolution is defined by its strategic pivot to Base, transforming it from an isolated chain into a composable, privacy-enhancing Layer 3. This foundational shift, now reinforced by live staking and a developer grants engine, positions ZEN for deeper integration within the broader Ethereum economy. The critical question now is whether developer adoption can accelerate to fully leverage this new technical foundation.