DCG-backed Horizen transitions ZEN to ERC-20 token on Base for compliant privacy L3 appchain

The Horizen blockchain has transitioned its native ZEN from its Layer 1 blockchain to a token on the Base blockchain. The token migration is part of Horizen 2.0 being deployed as a Layer 3 appchain on Base.

The migration has seen ZEN become a standard ERC-20 token while simultaneously launching a privacy-first appchain. The maximum supply of ZEN will remain capped at 21 million.

This marks the first step in Horizen's broader ecosystem relaunch on Base as a privacy-first appchain, the project noted.

Previously, exchange Coinbase announced in an X post that it will automatically convert existing ZEN tokens from the Horizen mainchain to their ERC-20 equivalents on Base.

The Horizen blockchain has undergone significant evolution over the years. It began as ZenCash, launched in May 2017 as a privacy-centric coin in competition with Monero and ZCash. Its native cryptocurrency, ZEN, was a mineable Proof-of-Work (PoW) coin used for transaction fees within the ecosystem.

In late 2018, ZenCash rebranded as Horizen, accompanied by the introduction of sidechains and a renewed focus on supporting decentralized applications. In 2023, the project updated its privacy status in response to a global trend, where many privacy-focused cryptocurrencies faced regulatory scrutiny and delistings.

Now the project is pivoting to a privacy-focused dapp on Base, powered by zero-knowledge proofs and "built for modular privacy and sustainable onchain utility," the project said.

Horizen Labs raised $4 million in a 2019 seed round led by Digital Currency Group (DCG). In 2021, it secured an additional $7 million in a round backed by DCG, Kenetic Capital, and others.

Grayscale, a DCG subsidiary, opened a Horizen Trust for accredited investors. This trust provides institutional investors exposure to ZEN without direct crypto ownership.

According to The Block's price page, ZEN's market cap is about $134 million, with the token trading at around $8.4 — a 12% decrease over the past 24 hours.