Deep Dive
1. Mainnet Staking Launch (July 2026)
Overview: Horizen activated its native staking mechanism on the mainnet. This allows ZEN holders to stake their tokens directly on the network to earn rewards, providing a new way to participate and adding a core utility for the token.
The preparation work for the consensus and staking mechanisms was completed, marking a shift to a proof-of-stake (PoS) model. The network uses the AURA (Authority-Round) consensus algorithm, where collators are selected to produce blocks based on their staked ZEN. This replaces the old proof-of-work system and is designed to secure the network while developing ZEN's tokenomics.
What this means: This is bullish for ZEN because it creates a direct, built-in use case for the token, encouraging holders to lock up their supply to earn passive income. This can reduce selling pressure and increase network security. For everyday users, it means a new, simple way to potentially grow their ZEN holdings by participating in the network's operation.
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Overview: The Horizen team held a community call to discuss ongoing ecosystem developments, its privacy strategy, and the details of the new ZEN staking program. This session provided transparency and gathered community feedback on technical direction.
The call featured discussions with AmaanahLabs on privacy-first yield opportunities, followed by an open Q&A. It served as a touchpoint to align the community with the project's roadmap following the major migration to Base.
What this means: This is neutral for ZEN as it reflects strong ongoing developer engagement and community management, which is essential for long-term project health. For users, it offers direct insight into the team's plans and the future utility of the ZEN token, helping them make more informed decisions.
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3. Horizen 2.0 Mainnet Launch on Base (December 2025)
Overview: Horizen completed its transition from an independent Layer 1 blockchain to an EVM-native Layer 3 rollup on Coinbase's Base network. This fundamental codebase overhaul enables developers to build privacy-enabled applications using familiar Ethereum tools.
The migration involved turning the native ZEN token into an ERC-20 asset on Base, shutting down the old mainchain and EON sidechain. The new architecture, Horizen 2.0, is designed for compliant privacy, offering a Confidential Compute Environment (HCCE) and integration with infrastructure like zkVerify for scalable zero-knowledge proof verification.
What this means: This is bullish for ZEN because it dramatically improves the token's liquidity and accessibility by plugging it into the vast Ethereum and Base ecosystems. For users and developers, it means faster, cheaper transactions and the ability to use ZEN in a wide array of DeFi applications, significantly expanding its potential use cases.
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Conclusion
Horizen's codebase updates chart a clear path from an isolated privacy chain to a integrated, utility-driven appchain on Base, capped by the recent activation of native staking. How will the new proof-of-stake rewards influence ZEN's circulating supply and holder behavior over the next quarter?