ZenIP 42406 Addendum: Proposing a Bold Leap Forward to Base for $ZEN and EON

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Correct, any rollup on Ethereum ultimately settles with ETH. The benefit of being an L3 on Base is that we’re sharing the L2 cost with everything on Base and then every L3 that’s contributing, like we would. It’s a massive amortization of costs down.

Most likely we’d want to do some sort of account abstraction or paymaster service that lets users pay fees in ZEN but then a small chunk of them convert to ETH for gas contributions.

What we can’t stress enough, however, is that the net cost is tiny compared to running your own L1 or being an L2, like Base.

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If you maybe know, could you explain a bit more where does the ETH to pay for Base come from in this suggested setup? Does the Horizen DAO buy it with the ZEN?

Note on the cost. Of course its less cost since its extremely centralized. Decentralized systems are more costly and less efficient. But its a spectrum of trade offs. I think the ZenIP should be drafted in a way to represent this more transparently so we know what exactly what we are voting on. What are we gaining and what are we losing. The current UTXO PoW chain + the EON forger network is probably multiple magnitudes more decentralized then Base.

The original Horizen 2.0 plan is probably also more decentralized then Base? Or not?

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Rob, can you give us some insight on your thought process on this. You said in the AMA that BASE was not your first choice. Can you tell us what you consider to be the pro vs. Con of each chain?

If I understand, ETH will be used for gaz fee.

  • What will be the utility of ZEN then ?
  • Will there be some staking similar to forger node ?
  • Why people would like to buy ZEN ?

I’ll keep my thoughts short, as I posted something similar on Discord.

  1. I’m not opposed to the Base proposal, but I don’t know enough about the technical aspects of it. I can see benefits of it being part of Coinbase, and I think that could be important if/when more regulations come around because meme coins and pump and dumps have been rampant in the space.

  2. What would stop other exchanges from supporting Horizen if it runs on Base, a product of Coinbase? They could easily just say they don’t want to support a Coinbase product, no? Binance is a larger exchange than Coinbase, and if they don’t want to support anything Base related, that would be brutal.

  3. I looked at what has actually been built/used on Base, and it’s pretty much just a bunch of memecoins and vaporware right now. That does concern me a bit.

  4. My biggest thing that I’ve said for years now, and this seems to be repeating the same exact thing is that once something is completed or “almost” completed after many months of saying that these big developments are “almost” ready is that there is something “new” that the project seems to want to jump too. People have issues believing in projects and trusting projects in this space, and it’s hard enough for people to understand BTC/ETH/SOL. It’s a lot more difficult for them to understand projects like Horizen, especially when there’s not a consistency and it seems like there’s always an itch to jump in a new direction and “develop” for many months. Again, I can’t speak to the technical aspects and I can certainly see the possible benefits of Base. However, I can also look at it as a regular crypto user and say that it can be very confusing and not confidence building when you just see change after change and different direction after different direction for years now.

So, I’m not opposed to the proposal, but I really think there needs to be a focus and realization at how this looks to people. I can see how this can come across as a project/team that people don’t think has a solid direction, and that does concern me. I don’t want to be negative about this as I can see the benefits, but the constant changes once some “development” is complete or almost complete does concern me. And, it’s not like these are minor changes.

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Hi Zain, Since BASE does not have collator nodes, would the addendum for migrating to BASE affect “The New Tokenomics of Horizen 2.0” that was passed in ZenIP 42407? I assume other than the infrastructure cost going down it remains unchanged, but I want to confirm since it is not mentioned.
https://horizen.discourse.group/t/zenip-42407-proposed-tokenomics-for-horizen-2-0/718

Can you expound on cross-chain interoperability? Are the plans on Base’s side different from Optimism’s more broadly? Will the Base ecosystem inherit the interop framework that OP is developing (Superchain interoperability explainer | Optimism Docs)?

In terms of cross-chain interoperability, Base is built using the OP Stack so the Base ecosystem inherits the same overall interop framework. Additionally, in this Optimism blog post entitled, “Welcoming L3s to the Superchain,” Optimism states:

“We’re excited to share that those who build an L3 with the OP Stack can also join the Superchain… There has been a significant desire for L3s to want to build on OP Stack, and we want to embrace their enthusiasm for joining the ever-growing Superchain ecosystem… L3s can provide application developers and those who want to deploy their own blockchain with a new, more cost-effective way to build within the Superchain ecosystem. We’re already seeing this trend with Base, which has rapidly expanded support for L3s building on top of it.”

On Base’s side, as cited in Base’s 2025 Mission, Values, and Strategy, Base’s mission is to bring a billion people onchain, where their big, hairy, audacious goals for 2025 are: 25 million people, 25 thousand developers, 250 Mgas/s blockspace capacity, $100 billion assets on platform, and 1 billion transactions on Base in October. Additionally, Jesse Pollak, Creator of Base and VP of Engineering at Coinbase, states:

“I expect there will be 100+ L3s on @base in 2025 bc people want dedicated blockspace, while building on top of existing state + network effects.”

This momentum positions Base as a prime hub for L3 expansion within the Superchain, combining dedicated scalability with interoperability.

Relatedly, in terms of accessing both Base and OP’s liquidity (OP Stack | Superchain Eco), that’s not something we’ve seen a lot of flowing outside of the top handful of chains so would be interested in understanding the plans there for: Common Bridging Standards, Chain Abstraction, Atomic Swaps, Cross-Chain Messaging Standards, Token Deployment standards and assistance.

Both Optimism and Base are actively improving cross-chain liquidity flow across OP Stack chains by developing a more seamless interoperability framework. Key focus areas include:

1) Cross-Chain Standards: The SuperchainERC20 contract implements ERC-7802 to enable asset interoperability within the Superchain. Instead of wrapping assets, this mechanism effectively “teleports” tokens between chains in the Superchain. It provides users with a secure and capital-efficient method for transacting across chains. This approach addresses issues such as liquidity fragmentation and poor user experiences caused by asset wrapping or reliance on liquidity pools.

2) Chain Abstraction: Account Abstraction (AA) is enabling gas fee flexibility, allowing users to pay gas in native ecosystem tokens rather than ETH. For example, World Chain uses ETH as its protocol gas token but leverages AA tooling to let users pay fees in WLD. This abstraction reduces friction for both developers and end users.

3) Deployment Standards & Assistance: Rollup-as-a-Service (RaaS) providers are streamlining L3 deployments on OP Stack chains like Base, offering easy integration as an L3 with standardized frameworks, infrastructure support, and flexible deployment options.

The long-term Superchain roadmap is focused on removing liquidity silos, ensuring frictionless asset movement, and enabling deep composability across all OP Stack ecosystems. These improvements allow Horizen and other projects to tap into both Base and OP’s broader liquidity network with minimal friction while benefiting from a robust and scalable deployment infrastructure.

What does joining the Superchain ecosystem actually mean? Would Horizen builders be able to lean on broader OP grants like retroactive funding? Would they be eligible for Base’s (albeit limited) small builder grants, etc.? Is there a list of applications that would be inherited from Base (i.e. Aerodrome?), these are things that helped immensely in terms of ApeChain in the Arbitrum ecosystem so would want to see similar commitments here!

As per the same Optimism blog post referenced above, “Welcoming L3s to the Superchain":

“Chains that have committed to the Superchain not only have access to a values-aligned network of builders, but they’re also able to tap into a wide variety of benefits, including eligibility for Retro Funding, Airdrops, and Superchain developer grant programs…”

This means that Superchain L3s, including Horizen, would not be operating in isolation but rather as part of a broader, well-supported ecosystem with funding and resources to help builders succeed. While eligibility for specific programs like Base’s Small Builder Grants depends on alignment with grant criteria, Horizen builders would be well-positioned to engage with these opportunities as part of the Base ecosystem.

Although there’s no predefined list of inherited applications yet, joining Base as an L3 creates opportunities for integration with its ecosystem. While different from Arbitrum’s model, the Superchain’s funding programs, developer resources, and ecosystem support offer strong bootstrapping opportunities for Horizen.

Can you expound on the modular architecture? Would Horizen have its choice of VMs for example (like Degen, would it be able to implement a Rust/C++ compatible VM like Stylus)? It sounds like yes (which is great obviously). What controls are there over protocol level decisions (gas token, fees, sequencing times, etc)?

The modular architecture of the OP Stack allows for flexibility in various protocol components. While the OP Stack follows a standardized architecture, it is designed to accommodate flexibility and customization where needed, including the ability to add precompiles to extend functionality. Though certain modifications are not yet officially supported for production, we would work closely with the Base and Optimism teams to ensure any customizations align with the broader Superchain roadmap and maintain full compatibility.

Horizen would have control over key protocol-level decisions, including:

1) Gas Token: Although the OP Stack supports configurable gas token options, Optimism encourages standard configurations using ETH. Horizen would implement alternative gas mechanisms via Account Abstraction (AA), similar to World Chain’s approach.

2) Fee Structures: L2s/L3s can define their own fee models to align with their economic and user experience goals.

3) Sequencing Parameters: Horizen would have control over batch submission frequency and block times to optimize performance based on its needs.

The OP Stack provides a configurable yet structured framework that enables L2s/L3s to tailor their chain parameters while ensuring smooth interoperability within the Superchain. With support from Base and Optimism, Horizen would be well-positioned to implement the configurations needed while staying aligned with the evolving Superchain ecosystem.

Interested in what makes the case studies referenced successful in your mind. Overall I think it really points to this being a new ecosystem, which comes with both high reward potential and high risk potential. Degen has been beset by issues w/ their RaaS provider, bridging problems, liquidity, etc while B3 is a bit too new to make a determination on, but my hunch is will be more successful. If it’s in relation to timeline and estimated costs and reduced infra, faster development times, etc. then I definitely think the educated hunch is right, but interested in any lessons learned or any concerns.

You’re right - this is a new ecosystem with both high reward potential and inherent risks as the infrastructure and best practices evolve.

A case study like Degen Chain highlights how L3s can achieve ultra-low transaction fees by settling on Layer-2 networks and leveraging alternative data availability solutions. This structure reduces costs compared to traditional Layer-1 interactions and allows for greater customization and experimentation, enabling new application designs that may not be viable on higher-cost layers.

As the OP Stack matures and L3 infrastructure continues to improve, launching an L3 is becoming more streamlined, cost-effective, and supported than ever before. Improved tooling, clearer best practices, and a growing network of aligned builders create a stronger foundation for new L3s. Horizen would be well-positioned to leverage these advancements while ensuring alignment with key partners to maximize success.

Are there other benefits to joining the Base ecosystem re: Coinbase? Is there a commitment to have Day 1 on/off-ramping from the CEX? Listing of new projects?

The Layer-3 (L3) ecosystem is still in its early stages, but it is maturing rapidly, with more projects exploring L3s as a way to enhance scalability, reduce costs, and enable new types of applications. As the ecosystem evolves, the integration of fiat on/off-ramps and liquidity solutions will continue to improve, making L3s even more viable for long-term growth.

Horizen has the opportunity to be a first mover in this space by migrating $ZEN and EON to Base, establishing itself early in an expanding network of L3s. While Base’s connection to Coinbase has the potential to provide robust infrastructure and access to a broad user base, projects must still take the lead in building adoption, liquidity, and ecosystem momentum. By positioning Horizen as an appchain optimized for privacy-preserving applications, this move aligns with the future of decentralized networks while also securing Horizen’s place at the forefront of this emerging L3 wave.

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We’ve been reviewing all your feedback, questions, and concerns about the ZenIP 42406 Addendum: Proposing a Bold Leap to Base Proposal.

To help address them, we’ve added an FAQ section to our blog post.

Check it out towards the bottom of the blog here: Announcing ZenIP 42406 Addendum: Proposing a Bold Leap to Base — Horizen

And be sure to stay active in the community discussion!

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Hey everyone.
I am writing an article today about Optimism and I found this video https://www.youtube.com/watch?v=muB-74sC1KY about the OP Stack.

Hope that will help you to learn more about the technology and why the move to Base on OP Stack makes sense for Horizen :slight_smile:

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I guess I’ll keep it simple and transparent. I don’t even necessarily call myself an avid BASE supporter or user, but would consider that within Horizen, yet I’m sure I had much more on chain activity this past year on BASE than I have had on EON.

Most of my activity came from playing only 2 games from the chain and some swaps on Uniswap and one swap on Virtuals.

So after reviewing base some more the amount of users and potentials on chain and building under the ecosystem seems amazing. full support for the visionary proposal, I guess one questions would be does this change anything in relation to zkVerify and that relationship?

Greetings, Everyone,

As the Head of Security for Horizen Labs, I want to share my perspective on the proposed move to Base and some of the advantages to our overall security posture for ZEN. Security is paramount to us, and our priority is to ensure we preserve and enhance the security of our network, our users, and our ecosystem partners.

Leveraging Ethereum’s Battle-Tested Security
Base is built on the OP Stack and inherits security assurances from Ethereum. By leveraging Ethereum’s mature network we can tap into a robust and time-tested consensus mechanism and benefit from Ethereum’s highly decentralized validator set. In other words, our community gains the protection of a larger, more decentralized, and more actively monitored infrastructure.

Increased Resilience and Faster Incident Response
One of the often-overlooked benefits of aligning with a proven platform like Base is enhanced incident response. When a security event arises, having a larger, more diverse set of security experts and infrastructure resources allows for swift detection, analysis, and containment of threats.

Streamlined Security Audits and Practices
Base’s compatibility with Ethereum standards simplifies our auditing process. The auditing firms and white-hat communities we already work with have deep experience with the Ethereum ecosystem. This shared knowledge enables more efficient, thorough, and frequent reviews of our code, reducing the risk of undiscovered exploits.

Proactive Protection Against Evolving Threats
As blockchain technology advances, so do the threat vectors. With Base, we automatically benefit from new security developments and improvements being pioneered within Ethereum and the OP Stack. This means we’re better prepared against evolving exploits and can more readily adopt emerging best practices.

The proposal to transition Horizen to Base is a strategic decision that promises to enhance our security infrastructure. I encourage everyone to explore these benefits, ask questions, and share feedback so we can continue to refine our approach and deliver the best possible protections for the Horizen ecosystem.

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