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Horizen

ZEN · Field entry
Smart-contract platformSmart contractsDeFiPrivacy

A former privacy coin, now an ERC-20 token for a privacy-focused Layer 3 chain on Base

By

$6.162.75%Snapshot · October 20, 2026 · updates live
Market cap
$113.36M
24h volume
$7.69M
Rank
#262
Circulating
18.41M ZEN
Max supply
21.00M ZEN
All-time high
$165.92 May 7, 2021

ZEN price chart

7-day snapshot. Chart data from CoinGecko.

What is Horizen?

Horizen began in 2017 as ZenCash, a mined privacy coin split off from Zclassic, itself a Zcash fork, but it switched off its shielded transactions in a February 2024 hard fork. In 2025 ZEN moved to Coinbase's Base network as an ERC-20 token, and Horizen now runs a Layer 3 chain aimed at apps that keep data confidential while staying auditable by authorized parties.

Utility Lens

What Horizen actually does

Governs and rewards participants in a Base-anchored chain built for confidential, compliance-friendly apps.

Real-world usage
earlyThe Layer 3 chain and staking are live, but the privacy layer is still reaching developers and the project says many core apps are still coming online.
Token necessity
optionalZEN is used for governance and staking rewards, but gas on Horizen's chain is paid in ETH, so apps can run without users holding ZEN.
Decentralization
limitedHorizen's chain is a rollup operated through Caldera that settles on Base, Vela runs on AWS Nitro Enclaves, and an on-chain registry decides who may request de-anonymization, though ZEN holders vote on proposals.
Track record
developingThe project dates to 2017, but today's chain only launched in December 2025 after ZEN left its original blockchain, so the current system is under a year old.

How we rate

What it’s used for

Holders trade ZEN on Base exchanges such as Aerodrome and Uniswap and on centralized exchanges, stake it for ecosystem rewards on Horizen's own chain, and vote on Zen Improvement Proposals. Gas on Horizen's chain is paid in ETH, not ZEN. The privacy layer, Vela, is still opening up to developers.

Role of the ZEN token:

governance

Evidence of real use

  • Horizen completed its migration to Base on July 23, 2025, turning ZEN into an ERC-20 token claimable 1:1 from the old chain. Source
  • Horizen deployed its Layer 3 mainnet on Base in December 2025 with a 1 million ZEN developer fund. Source
  • Horizen's Vela confidential compute layer runs apps inside trusted execution environments and was offered first as a local development environment, with testnet access on request. Source

Privacy: what’s hidden, what isn’t

Privacy model
app-level (private smart contracts or tools)
What it hides
For apps built on Vela: the inputs, logic state and positions of a confidential application, which run inside hardware enclaves with only encrypted outputs posted on-chain.
What stays visible
Ordinary ZEN transfers on Base and on Horizen Chain, which are fully public like any ERC-20; encrypted state roots and attestations from Vela; and bridge activity.
Reality check
ZEN itself has had no built-in transaction privacy since a February 2024 hard fork disabled Horizen's shielded transactions. Vela's confidentiality depends on trusted hardware and on a registry that can authorize de-anonymization, a deliberate trade-off for regulatory compatibility.

Privacy coins, explained

How Horizen works

Horizen today has three main parts. ZEN is an immutable ERC-20 token on Base, with a separate contract that lets holders of the old Horizen coin claim the same amount. Horizen Chain is an OP Stack Layer 3 rollup that posts its data to Base, which settles on Ethereum, and is operated through Caldera's rollup service. Vela is the confidential compute layer meant to provide privacy.

Vela runs app logic inside trusted execution environments (TEEs), hardware-isolated enclaves that currently run on AWS Nitro. Users send encrypted requests; only an encrypted state root and a hardware-signed attestation are posted on-chain, so neither the public nor the operator should see the data. For compliance, an on-chain registry controls who may request de-anonymization, and each such request is itself logged on-chain.

This is a very different design from early Horizen, which used Zcash-style shielded transactions on its own mined chain. Horizen decided in 2023 to drop shielded transactions, and a February 2024 hard fork turned them off, to shed the privacy coin label, then moved ZEN to Base in July 2025. According to Horizen Labs' CEO, speaking to The Block, only a small part of the old proof-of-work chain carried over into the new proof-of-stake appchain.

Key moments

  1. 2017ZenCash launches in May as a mined privacy coin, split off from Zclassic, itself a Zcash fork.
  2. 2018ZenCash rebrands as Horizen and shifts toward sidechains and apps.
  3. 2023Horizen announces it will drop support for shielded transactions on its mainchain so ZEN is no longer treated as a privacy coin.
  4. 2024A hard fork on February 7 disables the shielded pool on the Horizen mainchain.
  5. 2025ZEN migrates to Base as an ERC-20 token on July 23, and Horizen's Layer 3 mainnet goes live on Base in December.

Supply

ZEN's total supply stays capped at 21 million. With mining ended by the move to Base, a 2025 governance vote (ZenIP 42409) reassigned the roughly 5 million ZEN that had not yet been mined to DAO-directed uses such as ecosystem development, incentives and community grants. Staking rewards are meant to come from ecosystem revenue and DAO support rather than new emissions.

Risks to understand

  • The privacy layer is new: Vela relies on trusted hardware rather than pure cryptography, and its developers note it currently runs on AWS Nitro Enclaves.
  • Privacy is designed to be reversible for authorized parties, which may not suit users who want privacy from everyone.
  • The rollup and bridge depend on outside providers such as Caldera, Base and LayerZero's Stargate, adding operational and smart-contract risk.
  • Older coins left on the original Horizen chain must be claimed through the official portal; scammers target migrations, so use only horizen.io links.
  • Staking rewards depend on ecosystem revenue that the project itself says is still early.

Horizen FAQ

Is Horizen still a privacy coin?

No. Horizen turned off shielded transactions in a February 2024 hard fork, and ZEN is now a public ERC-20 token. Privacy is offered at the app level through Vela, which is still rolling out.

What happened to the old Horizen blockchain?

ZEN moved to Base in July 2025. Holders on the old chain can claim the same amount of ERC-20 ZEN through the official claim portal, with no deadline.

Do I need ZEN to use Horizen apps?

Not for gas, which is paid in ETH on Horizen Chain. ZEN is used for governance votes and staking rewards.

Sources

  1. Horizen (ZEN) Migration Hub — Horizen
  2. Vintage privacy project Horizen relaunches as Layer 3 on Base — The Block
  3. DCG-backed Horizen transitions ZEN to ERC-20 token on Base — The Block
  4. zend releases (v5.0.0: shielded pool removal) — Horizen on GitHub
  5. Quantum-Resistant Horizen, Part 1: The Chain and the Ecosystem — Horizen Labs
  6. Introducing Vela: The Confidential Compute Layer on Horizen — Horizen
  7. ZenIP 42409: Horizen 2.0 Tokenomics Proposal — Horizen
  8. Horizen price page — Coinbase

Last reviewed October 20, 2026. Written by . Utility Lens ratings are editorial judgments, not investment advice. Market data from CoinGecko. Spot an error? Request a correction.

About the author

Dave McNaught has worked in IT since 1999 and founded All Business Technologies (ABT) in 2003, a Boston-area firm providing Managed IT, Cybersecurity, Managed AI, Web Design and App Development. He publishes The Crypto Guide.

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