Horizen Launches Developer Funding Initiative for Privacy Applications
Horizen, a blockchain protocol dedicated to privacy established in 2017, has unveiled a five-year funding initiative aimed at developers, allocating 1 million ZEN tokens (equivalent to approximately $7.4 million at current values) for projects on its forthcoming Layer 3 network compatible with Base. Thrive Protocol, which oversees more than $70 million in funding across various blockchain platforms, will manage this program.
Funding Distribution and Focus Areas
This initiative represents a notable advancement in Horizen’s dedication to enhancing privacy technology, concentrating on four primary sectors: confidential financial services (40% of the allocation), AI and machine learning that preserves privacy (30%), gaming platforms that offer verifiable randomness (20%), and decentralized governance systems (10%). Each selected project will typically receive funding between $50,000 and $100,000 in ZEN tokens, with disbursements contingent upon the completion of verified project milestones rather than mere promises.
Transitioning from Privacy Coin to Ecosystem
The program illustrates Horizen’s transformation from its inception as a privacy coin to a holistic ecosystem for applications that prioritize user privacy. In contrast to conventional funding models that provide upfront capital, Horizen’s strategy ensures payments are made only after projects show tangible advancements: 10% upon project acceptance, 20% at mainnet launch, 30% upon achieving initial traction, and the final 40% contingent on a tenfold increase in usage.
Growing Demand for Privacy Technologies
The timing of this initiative coincides with a rising interest in privacy-enhancing technologies within blockchain applications. According to a survey conducted by Consensys last year, 83% of participants acknowledged the importance of data privacy, while 78% expressed a desire for greater control over their online identities. This concern is particularly critical in sectors such as finance and AI, where safeguarding personal data is essential.
Sustainable Development Approach
Horizen’s strategy prioritizes the long-term development of its ecosystem over short-term token distribution. The funding will utilize previously allocated tokens instead of issuing new ones, thereby adhering to the project’s commitment to a maximum supply of 21 million ZEN tokens established at launch.
Governance and Oversight
The initiative will be supervised by a seven-member advisory board composed entirely of Horizen contributors, encompassing representatives from development, community, and business development sectors. Board members will serve on a voluntary basis without compensation, ensuring that the program remains focused on enhancing ecosystem value instead of individual profit. Projects seeking funding must demonstrate a strong commitment to user privacy and security while contributing to meaningful on-chain activities.
Launch Timeline and Community Control
The funding initiative is set to commence in the third quarter of 2025, aligning with the deployment of Horizen’s Layer 3 mainnet. The Horizen community retains governance authority, which includes the ability to terminate the program through a DAO vote, allowing for a six-month wind-down period for ongoing projects.
Statements from Horizen and Thrive Leadership
“We’ve recognized that incentivizing development within web3 has been a significant challenge,” stated Rob Viglione, CEO of Horizen Labs. “Attracting and retaining talent is difficult, particularly when a clear path to sustainable funding is lacking. This 1M ZEN funding initiative with Thrive represents a significant advancement, ensuring that builders receive appropriate recognition for their contributions and the applications they develop. We believe this approach will yield long-term benefits for privacy in the Web3 landscape.”
“Privacy requires sustained effort; it’s not something that can be achieved quickly,” remarked Daniel Jacobs, CEO of Thrive. “This partnership with Horizen is logical, as the community’s long-term dedication to privacy aligns perfectly with Thrive’s model of funding projects that demonstrate their worth at every phase. We aim to support the growth of the Horizen ecosystem and back the developers who are transforming privacy into a tangible on-chain reality.”
About Horizen
Horizen is a modular platform built with a privacy-first approach, designed to make privacy technologies like zero-knowledge proofs and trusted execution environments (TEEs) accessible across the internet. Originally 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 (L3) appchain deployed on Base, which is an Ethereum Layer 2 solution developed by Coinbase.
Horizen 2.0 enhances performance, privacy, and scalability for developers creating privacy-oriented and compliance-friendly applications, while significantly reducing costs and latency. Central to the ecosystem is ZEN, the native utility token that facilitates governance, access to privacy services, and interactions with zkApps. With its transition to Base, ZEN will become an ERC-20 token, which will improve its liquidity, interoperability, and composability across the broader Ethereum ecosystem.
About Thrive Protocol
Thrive is the pioneering protocol for proof of value (POV), introducing an innovative consensus mechanism that optimizes the crypto funding process. Thrive’s decentralized network of expert reviewers validates the creation of value at critical milestones, enhancing the efficiency of fundraising and capital allocation. The protocol collaborates with leading blockchain platforms such as Polygon, Arbitrum, XION, ApeCoin, and Hedera to support builders who are making a significant impact in the crypto space.
