renZEC

Halal Rating :
Comfortable
Contract: 0x1c5db575e2ff833e46a2e9864c22f4b22e0b37c2
Last Price $29.3 Last updated:
Rank 6638
1D Change 1.10 %
Market Cap -
Circulating supply 0
Maximum supply 9,550

Crypto Overview

Categories
  • Ethereum Ecosystem
  • Wrapped Tokens
  • Polygon Ecosystem
  • Fantom Ecosystem

Overview

renZEC is a wrapped version of Zcash (ZEC) that operates on the Ethereum blockchain. It was created through the Ren Protocol, which allows users to transfer cryptocurrencies between different blockchain networks. The primary purpose of renZEC is to enable Zcash holders to access Ethereum's DeFi ecosystem while maintaining a tokenized version of their ZEC holdings.

Purpose and Utility

The main utility of renZEC is to serve as an ERC-20 representation of Zcash on the Ethereum network. Users can mint renZEC by locking ZEC in the Ren Protocol, and they can burn renZEC to retrieve their original ZEC. This creates a bridge between the Zcash and Ethereum ecosystems.

Business Model Analysis

The business model involves facilitating cross-chain interoperability through a 1:1 backing of ZEC. Each renZEC token is fully backed by an equivalent amount of ZEC held in the protocol. The system operates transparently, with all transactions and locked assets visible on both blockchains.

Development and Adoption

As of 2023, the Ren Protocol, which was responsible for renZEC, has largely been discontinued following the bankruptcy of Alameda Research, which was maintaining the protocol. This has significantly impacted the utility and adoption of renZEC.

Token Distribution and Governance

The token distribution follows a direct 1:1 minting process based on locked ZEC. There are no pre-mined tokens or special allocations to founders, as the supply is entirely determined by user deposits.

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