Horizen 2.0: ZEN’s Migration to Base Chain as an ERC-20 Token Ushers in a New Era of Privacy

The blockchain world is constantly evolving, and Horizen is no exception. In a bold move, Horizen has migrated its native ZEN token from its original Layer 1 blockchain to the Base chain, transforming it into an ERC-20 token as part of its Horizen 2.0 three-layer privacy application chain deployment. With the total supply capped at 21 million, this transition marks a significant milestone for the privacy-focused ecosystem. Let’s unpack what this migration means, why it’s a game-changer, and how it positions Horizen for the future of decentralized applications.

A Strategic Leap to Base Chain

Horizen’s migration to Base, a Coinbase-backed Ethereum Layer 2 solution, is more than a technical upgrade—it’s a strategic pivot designed to enhance scalability, liquidity, and developer accessibility. Originally launched in 2017 as ZenCash, Horizen has long been a pioneer in privacy-centric blockchain technology. The shift to Base aligns Horizen with one of the fastest-growing ecosystems in Web3, leveraging Base’s low-cost transactions, Ethereum-aligned security, and seamless integration with Coinbase’s infrastructure.

The decision to adopt the ERC-20 standard for ZEN is particularly significant. ERC-20 tokens are the gold standard for Ethereum-compatible chains, offering compatibility with a vast array of wallets, exchanges, and decentralized applications (dApps). By becoming an ERC-20 token on Base, ZEN gains improved interoperability and liquidity, making it easier for users to trade, store, and utilize their tokens across the Ethereum ecosystem. This move also positions ZEN to tap into Base’s thriving DeFi, gaming, and NFT marketplaces, opening new opportunities for developers and users alike.

Horizen 2.0: A Privacy-First Appchain

At the heart of this migration is Horizen 2.0, a three-layer privacy application chain (L3) deployed on Base. Unlike its earlier iterations, which relied on a hybrid Proof-of-Work/Proof-of-Stake model, Horizen 2.0 is designed as a modular, privacy-first platform. It integrates advanced zero-knowledge (ZK) technologies, including zero-knowledge proofs (ZKPs), trusted execution environments (TEEs), attribute-based encryption (ABE), multi-party computation (MPC), and fully homomorphic encryption (FHE). These tools enable developers to build scalable, regulation-compliant applications with privacy baked in by default.

As the first privacy-native appchain on Base, Horizen 2.0 offers a unique value proposition: it combines Ethereum’s robust security with Base’s scalability while providing a dedicated privacy layer for applications. From confidential stablecoins to private DeFi protocols and secure AI interactions, Horizen’s infrastructure is tailored for use cases where data confidentiality is paramount. Developers can use familiar tools like Solidity, Node.js, and Python to embed privacy directly into smart contracts, lowering the barrier to entry for building privacy-first dApps.

The ZEN Token: Continuity and Evolution

Despite the migration, Horizen has ensured continuity for ZEN holders. The total supply remains capped at 21 million, preserving the token’s scarcity and cultural heritage as a fair-launch project with no ICO or pre-mine. However, the tokenomics have been updated to support Horizen 2.0’s ambitious goals. The circulating supply has increased from 16 million to 17.25 million, with 750,000 ZEN allocated to the Horizen DAO and 500,000 to the Horizen Foundation for ecosystem growth, development grants, and community incentives. These funds will not be sold immediately, ensuring long-term sustainability.

ZEN remains the lifeblood of the Horizen ecosystem, serving as the governance token for the Horizen DAO, a payment token for privacy services, and a utility token for zkApp interactions. The migration to Base enhances ZEN’s utility by enabling seamless integration with DeFi protocols and other Ethereum-based applications. Additionally, the Horizen Developer Grants Program, approved in June 2025, will allocate up to 1 million ZEN over five years to support projects aligned with Horizen’s privacy-focused mission.

A Seamless Migration Process

Horizen has prioritized a smooth transition for ZEN holders. For those holding ZEN on supported exchanges like Binance, Coinbase, or KuCoin, the migration was automatic, with exchanges handling the swap to ERC-20 ZEN on Base. However, users holding ZEN on the Horizen mainchain or EON sidechain needed to take manual action. A user-friendly claim portal was provided, allowing holders to sign a message proving ownership and receive an equivalent amount of ERC-20 ZEN on Base. The testnet claim portal allowed users to practice the process before the mainnet launch on July 23, 2025.

Important warnings were issued to ensure a successful migration. ZEN locked in smart contracts, DeFi pools, or multisig wallets would not migrate automatically, requiring users to move their tokens to a regular wallet like Sphere or Ledger beforehand. Non-native tokens on EON, such as USDC or WBTC, needed to be bridged back to their original chains using tools like Archon or Wanchain. These precautions underscored the importance of user preparation to avoid losing access to tokens.

Why Base? Unlocking New Possibilities

The choice of Base as Horizen’s new home is strategic. Base offers lower transaction fees and faster confirmation times compared to Ethereum’s mainnet, making it an ideal platform for privacy-focused applications that require high throughput and affordability. By aligning with Base, Horizen benefits from Coinbase’s institutional-grade security and compliance backbone, enhancing its appeal to both retail and institutional users. The Grayscale Horizen Trust (HZEN), which uses Coinbase Custody, further strengthens ZEN’s institutional positioning.

Base’s vibrant ecosystem also provides ZEN with greater visibility and liquidity. With a market cap of approximately $158 million and a trading volume of $26.7 million as of July 22, 2025, ZEN is well-positioned to capitalize on Base’s growing adoption. The token’s price, hovering around $9.81, reflects market confidence in Horizen’s pivot, despite short-term fluctuations.

Pros and cons

The migration to Base and the launch of Horizen 2.0 are not without challenges. The transition required careful coordination with exchanges, node operators, and users to ensure a secure and orderly process. Audits by Cantina and Halborn, conducted in June and July 2025, confirmed the robustness of Horizen’s migration tools and smart contracts, boosting user confidence.

Looking ahead, Horizen 2.0 aims to redefine privacy in Web3. By integrating with leading ZK infrastructure providers like Fermah, zkVerify, and Singularity, Horizen optimizes proof generation for performance and cost-efficiency. The platform’s modular design supports future advancements in cryptography, such as homomorphic encryption, ensuring it remains at the forefront of privacy technology.

A New Chapter for Horizen

Horizen’s migration to Base and the launch of Horizen 2.0 mark a pivotal moment for the project. By transforming ZEN into an ERC-20 token and deploying a privacy-first L3 appchain, Horizen is positioning itself as a leader in scalable, compliant privacy solutions. The unchanged 21 million token supply, updated tokenomics, and seamless migration process reflect Horizen’s commitment to its community and its vision for a privacy-centric future.

For ZEN holders, developers, and the broader crypto community, this transition opens new doors. Whether you’re trading ZEN on Binance, building dApps on Base, or participating in the Horizen DAO, the opportunities are vast. As Horizen continues to evolve, it’s clear that privacy, scalability, and accessibility will remain at the core of its mission.