Given the intense and valuable discussions about the future of $ZEN that’ve been going on in this forum recently, and in response to a ton of community feedback and the recent AMA, I figured it’s time to clarify a vision for Horizen that brings everything together. Check out my recent blog post to see what I mean.
$ZEN may not be the perfect token for a new proof verification layer, but it is the ideal token for building a “home for ZK” on an EON 2.0. Rearranging the ecosystem a bit per the blog post, and we can bring hundreds of millions of dollars of TVL onto EON. This would be one of the most competitive EVMs in the industry, and we can focus it on being a home for everything ZK; from tooling, to smart contract precompiles, to a range of ZK dApps, and ZK rollups.
Layering all this on the first modular blockchain for ZK, which could add the second token to the Horizen ecosystem, also happens to be the most efficient settlement layer for ZK. Overall, this gives Horizen a powerful vision unique in the industry and consistent with our roots.
I very much want to hear feedback and to see what kinds of ZenIPs this spurs, if there’s broad support and interest in seeing it become a reality.
The Web3 industry is constantly evolving, and Horizen, as a part of it, should evolve to better adapt to the industry’s rules and stay competitive.
The supply of ZEN does not fit the current token economics of the industry, so I support the creation of a new token by the verification chain, but only if the team truly considers the interests of ZEN holders. The airdrop ratio of tokens is the most critical, which is related to the long-term development of the whole community and the confidence in you.
You once said, “I will be the one who suffers the greatest dilution.” This sentence makes me uneasy.
I only meant that if there would be dilution of $ZEN, which, with this proposed vision, would not be the case. And I agree with you: I would support the adoption of a new token if it proposed a substantial airdrop to $ZEN holders.
This is a brilliant vision that keeps $ZEN utility, fair launch and 21M supply while maintaining its zk heritage. I also support a new token and happy to expansion of a verification layer and brining the ZEN community into it as well. It should be noted that ZEN retains utility and lives on with EON as the home for zk.
I really resonate with the vision laid out in the blog post.
We return to our ZK roots as pioneers.
We adapt to industry changes. The truth is, 99.99% of the POW projects of our generation have either collapsed or faded into irrelevance.
We retain ZEN tokenomics and drive some of the value to a pool of incentives to boost the EON ecosystem.
ZEN retains its utility (as the Gas Token of EON + Governance), and in the process, EON migrates to a new competitive tech stack.
We receive a generous airdrop for the new chain.
I have been excited about the idea ‘New Horizen’ proof verification chain, it definitely a great tech that will make horizen ecosystem be a big part of web3. I agree with this point “tokenomics must match product function” because it underscores the importance of aligning the design and distribution of tokens with the objectives and functionalities of the underlying platform or product. If $ZEN was planned to be removed, i think it would have been a wrong plan, $ZEN has been the brand identity of the Horizen ecosystem. I also fully agree with a new token for Proof verification chain with a different tokenomics from that of $ZEN, a tokenomics that will match the purpose of the new chain. The the migration of $ZEN to EON as for gas and governance token will be a good one… KEEPING THAT IDENTITY. Also the airdrop of the new token to $ZEN holders is a good one for marketing i guess… Just my two cents
Web3 is evolving, and to stay relevant, you must evolve. Change here is inevitable!
The ideal token supply depends on various factors, including the project’s goals, utility, and distribution strategy. But with two-thirds of $ZEN already mined it won’t be a good idea to still use it as a token for NH
Does the 21M $ZEN token supply really pose a threat to New Horizen?
The truth is, doing the right thing at this initial stage will determine how successful NH will be!
I’ve seen a project launched in 2017 move from the ETH chain to its own Native L1 Blockchain in 2022 with major changes and go on to be so huge.
I think it is a good idea to expect an increase in the price of zen tokens due to the airdrop and interest in and price increase in nh tokens.
I think that if there is a rumor that an airdrop will be given to zen token holders, it will have a very positive effect on the rise in zen price.
It’s also a good idea to give zen tokens new utilities.
If $zen is migrated to EON and used as governance token and gas, will there be any problem in operation even if it is limited to 21 million? Might I need to modify $zen tokenomics again in the future?
It’s always a tradeoff and the idea here is to keep the $ZEN tokenomics fixed, as that seems super important to the community. The more I think about it, the more I realize it’s really important to me, as well, and what I like about this idea is that we get to keep $ZEN as-is. What’s changing about “tokenomics” is that in that migrating to EON 2.0 means we wouldn’t need to continue PoW mining and security would be derived, most likely (if the implementation is via a parachain, which seems like it might be) the full 60% that goes to miners today could be repurposed to making EON incentives competitive. In that case, it doesn’t seem necessary to launch another token or change tokenomics after migration.
And just to clarify, when you say “it doesn’t seem necessary to launch another token or change tokenomics after migration” - you’re talking specifically about $Zen, right? You still believe that there is a need for a new token for the proof verification chain?
I believe, based on your blog post, that the answer to both questions is “yes” - but just want to avoid any potential confusion!
Profit suggestion for holders. For airdrops, $ZEN dumping after dropping is a problem. So, it reflects the lock-up period according to the node operation period. For example, the node operation period is 12 months or more without lock-up, 6 months or more with 2 months lock-up, and 3 months or more with 3 months lock-up. Of course, it’s a simple example, and in this way, you can prevent $ZEN dumping and digest the volume sequentially. I ask you to consider this method.
