Summary
The forthcoming zero-knowledge proof verification blockchain presents exciting opportunities for the Horizen ecosystem. Moving forward, Horizen Labs will manage development and bear the associated costs of building out the ZKPV blockchain, which ultimately will contribute to a new decentralized ecosystem. It is desired for the Horizen community to play a key role within this anticipated ZKPV ecosystem. There is an advantageous opportunity for $ZEN to migrate along with EON to a new tech stack that could form the core of a “hub for ZK” and the application environment for the ZKPV blockchain. As early adopters of the new ZKPV ecosystem and by taking actions in support of its launch and advancement, both $ZEN holders and the Horizen DAO would satisfy eligibility criteria to participate in allocation categories of the desired new token for the ZKPV ecosystem.
Specifics
The upcoming zero-knowledge proof verification (ZKPV) blockchain project is an exciting development for the Horizen Community. Over the past month, we at Horizen Labs have held conversations with many $ZEN holders from across the community. As the development team behind ZKPV and as a technical service provider to the Horizen ecosystem, we have listened, and what we have heard is:
- ZK proof verification solves a real problem in the industry, the timing is right, and this solution should get to market quickly
- The team should move fast to get it built and go to mainnet as soon as possible
- $ZEN must play an integral role in the new system
- The tokenomics of $ZEN must be preserved: the 21 million total supply of $ZEN cannot change
Given 1) the feedback we’ve received; 2) the need to move as fast as possible; and 3) the costs to deliver ZKPV chain expeditiously, we’re announcing a new path to bring the ZKPV blockchain to market.
This path will ensure that we:
- Move fast – by bringing the ZKPV chain to production before the end of 2024.
- Keep $ZEN holders involved with the ZKPV chain in a meaningful way
- Support the implementation of a token native to the ZK Proof Verification blockchain that is optimized for the project’s success
- Maintain regulatory compliance and reducing potential regulatory risks
Under this approach, HL will rapidly develop the new ZKPV blockchain and then contribute this technology to a new decentralized ecosystem, which would include a new foundation, DAO, and native token for utility and governance.
As the community has made clear in recent weeks, a new token for the ZKPV chain is preferable to moving $ZEN to become the native token of the new blockchain. Given the clear message from the community is that the ZKPV chain needs a new token, it follows that it is necessary for a new ecosystem to own and manage the new protocol to ensure $ZEN maintains its fair launch regulatory posture.
This is where there is a big opportunity for the Horizen community and the ecosystem at large.
By working with the Horizen community, a ZKPV ecosystem has the opportunity to immediately bring onboard a large and active group who believe in the power of ZK proofs to turbocharge the blockchain industry.
Over the years, the Horizen community has seen the progression of zero-knowledge cryptography from zk-SNARKs for private payments, to zk-SNARKS used in the Zendoo Cross Chain Transfer Protocol, to now seeing zk-rollups for Ethereum, and soon Bitcoin. This community understands the power of ZK proofs.
The opportunity is for $ZEN to play an important part in bringing the ZKPV blockchain to the rest of the web3 space. ZK proof verification needs to have a closely connected EVM-compatible blockchain in order to work with the rest of web3 – specifically, an execution environment for applications. Horizen already has such an EVM with $ZEN as the token - Horizen EON.
The Horizen community has a promising opportunity to recommend and ultimately direct that the Horizen Foundation work to establish an agreement with the anticipated ZKPV ecosystem to assist in the migration of EON and $ZEN to a new single, EVM-compatible blockchain–along the lines of the vision Rob laid out in his April blogpost. This is just one way in which a distinct ZKPV ecosystem can benefit the Horizen community. Another benefit is that the cost of developing and bringing to market the ZKPV chain will not be borne by the Horizen community. And moreover, it is our strong belief that, per the vision in Rob’s blog post, any ecosystem token for the ZPKV ecosystem should directly benefit $ZEN holders.
In light of this, moving forward, Horizen Labs will continue to manage the development costs associated with the ZKPV buildout to ensure ZKPV blockchain speed to market while having the ability to work with many different partners in an efficient and effective way. The Horizen community should focus on the next steps for $ZEN and not be encumbered with ZKPV decisions. Horizen Labs will have no further obligations to the Horizen DAO with respect to ZenIP 42400. Horizen Labs has incurred all costs associated with ZKPV to-date.
The Horizen community has a significant opportunity to have meaningful involvement and a mutually beneficial relationship with the forthcoming ZK Proof Verification ecosystem. While it is ultimately up to the Horizen community to decide the preferred path forward, one option could include proposing that all $ZEN be moved to a new version of EON that would be coupled with a ZK Proof Verification blockchain and ecosystem.
The team at Horizen Labs looks forward to seeing what the Horizen community decides on the path of $ZEN / EON migration. We also look forward to continuing to support the Horizen ecosystem as a longstanding and leading service provider.