Ethereum News Today: Horizen Migrates ZEN to Base to Boost DeFi Privacy Token Dips 13% After Launch

Horizen (ZEN) has executed a strategic transition by migrating its native token to Base, an Ethereum Layer 2 scaling solution, marking a pivotal step in its evolution into a privacy-focused decentralized finance (DeFi) appchain. The migration, finalized in late July 2025, repositions ZEN as an ERC-20 token while decommissioning its legacy UTXO mainchain and EON sidechain. This shift aims to enhance interoperability with Ethereum-based DeFi platforms such as Aerodrome and Uniswap, expanding liquidity options and enabling new yield strategies like liquidity vaults and single-sided staking [1]. The move also initiates Horizen 2.0, a privacy-first architecture integrating zero-knowledge (ZK) proof technology to enable default confidentiality for transactions, staking pools, and verifiable interactions without exposing sensitive data [3].

The transition was executed with minimal disruption, supported by security audits from Halborn and Cantina, which confirmed no critical vulnerabilities in the migration contracts [1]. Exchanges like Coinbase and Bybit automatically converted user holdings to the new ERC-20 standard, ensuring a seamless transition. The updated circulating supply of ZEN increased to 17.25 million, with 750,000 tokens allocated to the Horizen DAO and 500,000 to the Horizen Foundation, while the max supply remains fixed at 21 million [1]. The migration was approved via a DAO-led governance proposal (ZenIP 42405) with near-unanimous support, underscoring decentralized control over treasury operations and a five-year grant program distributing up to 1 million ZEN for developer initiatives [1].

Horizen’s integration with Base leverages Ethereum’s scalability and low transaction costs, positioning ZEN as a bridge between privacy-centric applications and mainstream DeFi. The platform’s privacy layer, built on ZK proofs, simplifies confidentiality by embedding it at the protocol level rather than requiring users to adopt external tools [3]. This approach aligns with growing demand for data protection in financial and enterprise ecosystems. However, the success of this strategy hinges on developer adoption of privacy tools and user uptake of applications that prioritize confidentiality, both of which remain nascent in the broader crypto landscape [2].

The transition also reflects Horizen’s shift from a standalone blockchain to a modular appchain tailored for privacy, aligning with industry trends toward specialized, interoperable chains. Institutional support, including a $11 million funding round from investors like DCG and Kenetic Capital, and Grayscale’s migration of its Horizen Trust assets to Base, further validate the platform’s utility [1]. Despite a 13% intraday decline in ZEN’s price to $8.28 on July 24, with a market cap of $137.3 million, the token’s fixed supply and integration with major exchanges like Coinbase and Binance highlight its potential in institutional and retail markets [1].

Source:

[1] [Horizen migrates ZEN token to Base to launch privacy appchain](https://crypto.news/horizen-zen-token-base-launch-privacy-appchain-2025/)

[2] [DCG-backed Horizen transitions ZEN to ERC-20 token on Base](https://www.theblock.co/post/364064/horizen-zen-base-appchain)

[3] [Horizen Based: ZEN is Now Live on Base](https://mirror.xyz/horizenofficial.eth/1tTHDJxYoIpZNP5jfxCiMuIrPQKkivUTVJgupzie3p4)