Gold is 2025’s best performer. UBS sees more upside
Grayscale Horizen Trust (OTC:HZEN) announced Friday that it will migrate its assets from the main Horizen blockchain to the Base blockchain, following a favorable vote by the Horizen DAO earlier this year. The migration is scheduled to be completed by July 23, at which point the trust will recognize ERC-20 ZEN tokens on the Base blockchain as its primary asset.
According to a statement from Grayscale Investments Sponsors, LLC, the trust’s sponsor, the move comes as the Horizen blockchain plans to discontinue all ZEN tokens on its original network. After the migration, each ZEN token currently held by the trust will be replaced by a ZEN Base Token, and all assets of the trust will consist of these new tokens.
The migration will also result in a change to the underlying emissions schedule of the Horizen protocol, increasing the circulating supply from approximately 16.0 million ZEN to a projected 17.25 million ZEN Base Tokens. Of this increase, 0.75 million tokens will be allocated to the Horizen DAO and 0.50 million to the Horizen Foundation.
Coinbase (NASDAQ:COIN) Custody Trust Company, LLC is expected to serve as custodian for the trust’s ZEN Base Tokens after the migration. The trust stated that no action is required from its shareholders to complete the migration.
The sponsor noted it will evaluate the adoption and usage of ZEN Base Tokens, as well as the ongoing viability of the trust, and expects to make a determination on the trust’s future by December 2025. Depending on this evaluation, the sponsor may discontinue the trust’s affairs as described in its SEC filings.
The ZEN Base Tokens are ERC-20 tokens built on the Base blockchain, a Layer-2 network designed to increase transaction throughput by utilizing optimistic rollups and periodically syncing with the Ethereum Network. The information in this article is based on a press release statement included in the trust’s SEC filing.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.