Horizen

Overview

Horizen (ZEN) is a privacy-focused blockchain platform that aims to provide scalable solutions for privacy-preserving decentralized applications. The project evolved from ZenCash, which launched in 2017, and has since expanded its scope beyond privacy-focused transactions.

Intended Utility

Horizen's primary intended utilities include: secure transactions with optional privacy features, a platform for building decentralized applications (dApps), and a scalable sidechain system called Zendoo that allows for customizable blockchain deployments. The ZEN token serves as the native currency for transaction fees, node operations, and governance.

Actual Utility

The platform maintains an active network of nodes (called Secure and Super Nodes) that help secure the network and provide infrastructure services. The project has demonstrated consistent development activity, with regular updates to its core protocol and tooling. The sidechain system is operational and being used by various projects.

Token Distribution and Governance

Horizen maintains a transparent tokenomics model where mining rewards are split between miners (60%), node operators (25%), and the Horizen DAO treasury (15%). The project transitioned to a DAO structure in 2021, giving token holders voting rights on project decisions. There are no concerning concentrations of tokens among founders or early investors.

Technology and Revenue Model

The platform generates revenue through transaction fees and sidechain deployment fees. The node system operates on a proof-of-work consensus mechanism, with additional infrastructure provided by node operators who receive rewards for their service. These mechanisms do not involve interest-bearing components.