Horizen Unveils Developer Funding Initiative for Privacy Applications
Horizen, a blockchain protocol concentrating on privacy, has revealed a new five-year funding program aimed at developers, allocating 1 million ZEN tokens, equivalent to approximately $7.4 million based on current market prices, for applications on its upcoming Layer 3 network compatible with Base. Thrive Protocol, which oversees more than $70 million in financial resources across various blockchain projects, will manage this initiative.
Funding Allocation and Focus Areas
The new funding program signifies a notable advancement in Horizen’s dedication to enhancing privacy technology, focusing on four primary sectors: confidential financial services will receive 40% of the budget, privacy-preserving AI and machine learning will get 30%, gaming platforms that guarantee verifiable randomness will account for 20%, and decentralized governance systems will receive the remaining 10%. Typically, projects can expect funding ranging from $50,000 to $100,000 in ZEN tokens, with funds disbursed according to verified milestones rather than initial promises.
Transitioning Towards a Comprehensive Ecosystem
This program signifies Horizen’s transformation from its initial concept as a privacy coin in 2017 into a robust ecosystem for applications that prioritize privacy. Unlike many traditional funding initiatives that release funds upfront, Horizen’s program is structured to issue payments based on demonstrable project progress: 10% upon acceptance, 20% upon mainnet launch, 30% with early traction, and the final 40% after achieving tenfold usage growth.
Long-Term Commitment to Privacy Technology
The timing of this initiative coincides with a rising interest in privacy-focused technologies within the blockchain space. A survey conducted by Consensys last year indicated that 83% of participants valued data privacy, while 78% expressed a desire for greater control over their online identity. This is especially critical in sectors like financial services and AI, where safeguarding data privacy is essential.
Preserving Tokenomics and Advisory Oversight
Horizen’s strategy prioritizes sustainable ecosystem development over immediate token distribution. The funding will utilize previously approved token allocations instead of generating new tokens, thereby adhering to the established maximum supply of 21 million ZEN. An advisory board, consisting of seven members exclusively from Horizen’s teams—development, community, and business development—will oversee the program. These members serve voluntarily, emphasizing the initiative’s focus on enhancing ecosystem value rather than personal profit.
Program Launch and Governance Control
Projects interested in securing funding must show a strong commitment to user privacy and security, developing applications that foster significant on-chain activity. The funding program is set to commence in the third quarter of 2025, aligning with the deployment of Horizen’s Layer 3 mainnet. The Horizen community will maintain governance authority, including the option to terminate the program through a DAO vote, which includes a six-month wind-down for ongoing projects.
Leadership Insights on Development Challenges
Rob Viglione, CEO of Horizen Labs, commented on the ongoing challenges in web3 development, highlighting the difficulties in attracting and retaining talent amid unclear funding pathways. He emphasized that the 1 million ZEN funding initiative in partnership with Thrive represents a significant milestone, ensuring that developers are rewarded for their contributions and the applications they create, positioning it as a long-term advantage for privacy within the Web3 landscape.
Thrive’s Role in Supporting Privacy Initiatives
Daniel Jacobs, CEO of Thrive, noted the importance of persistence in achieving privacy solutions, stating that it requires time and dedicated teams to create tangible products. He reiterated that the collaboration with Horizen aligns perfectly with Thrive’s mission to fund projects that demonstrate their worth at each stage, aiming to nurture the Horizen ecosystem and support developers who are making privacy a reality on-chain.
About Horizen
Horizen is a modular platform focused on privacy that aims to make advanced privacy technologies, such as zero-knowledge proofs and trusted execution environments (TEEs), accessible across the web. Initially launched in 2017 as a fair launch, non-ICO project, Horizen is now evolving with the introduction of Horizen 2.0, a next-generation Layer 3 application chain deployed on Base, a Layer 2 solution developed by Coinbase.
Enhancing Ecosystem Performance
Horizen 2.0 aims to improve performance, privacy, and scalability for developers creating applications that prioritize privacy while adhering to compliance requirements, with significantly lower costs and reduced latency. ZEN, the native utility token of the ecosystem, serves multiple functions, including governance participation, access to privacy services, and powering zkApp interactions. With the transition to Base, ZEN will be converted into an ERC-20 token, enhancing its liquidity, interoperability, and composability within the broader Ethereum ecosystem.
About Thrive Protocol
Thrive stands as the first protocol to implement proof of value (POV), a novel consensus mechanism designed to streamline the crypto funding process. With a decentralized network of expert reviewers, Thrive validates the actual creation of value at critical milestones, enhancing the efficiency of fundraising and capital allocation. The protocol collaborates with prominent blockchain networks such as Polygon, Arbitrum, XION, ApeCoin, and Hedera to support builders who are making a significant impact in the crypto sector.
