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Horizen

Horizen (ZEN)

AI Assisted Shariah Verdict
Last Update: 8/3/2026
Halal

SUMMARY

Horizen (ZEN) operates as a compliant privacy-focused Layer 3 on Base. The token has clear utility for gas, governance, and native staking, with no identified exposure to haram business activities or impure protocol revenue.

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Verdict by Activity

How you can hold and use ZEN

Buy & Hold

Halal

Buying and holding ZEN is permissible as it is the native utility token of a neutral blockchain infrastructure with no core haram business activities.

ZEN Staking

Optional
Halal

Native network staking rewards funded by protocol fees, sequencer revenue, and partial inflation are permissible as payment for validation services.

Shariah Component Breakdown

Shariah Analysis

Infrastructure — where it runs

Passed

The asset operates as a Layer 3 on Base (an Ethereum L2), which is a neutral, general-purpose network.

Application — what it does

Passed

Horizen provides a privacy-first EVM-compatible blockchain ecosystem. The research confirms the absence of riba, maisir, and haram industry exposure in its core operations.

Asset — what you own

Passed

ZEN is used for governance, gas fees, and native network staking. Staking rewards are sourced from protocol fees, sequencer revenue, and partial inflation, which is a permissible utility.

Property Status (Māl)

Passed

ZEN is a native protocol position with confirmed genuine lawful use, ascertainable supply, fixed/rule-based minting, and established adoption.

Revenue Purity

Passed

Protocol revenue is generated from transaction/gas fees and sequencer revenue, with no haram share identified. Treasury interest practices are unknown.

Legitimacy & Security

whitepaper

Passed

Comprehensive documentation and tokenomics for the Horizen 2.0 transition are available.

social presence

Passed

The project has established adoption and is actively governed by the Horizen DAO through community proposals (ZENIPs).

project audits

Passed

Security and audit information was found for the project.

Team & Ecosystem

team background

Passed

The project identity is confirmed, and the team has demonstrated capability by successfully navigating regulatory threats and migrating to a compliant architecture.

Detailed Shariah Report

Overview

Horizen is a privacy-first, EVM-compatible blockchain ecosystem operating as a Layer 3 on Base, designed to enable regulatory-compliant, confidential execution for on-chain applications using zero-knowledge proofs. Its native token, ZEN, is a protocol position used for network governance, paying transaction gas fees, and staking to secure the network.

Why This Verdict

The Halal verdict for Horizen is based on a three-layer Shariah screen evaluating its underlying infrastructure, its core application, and the asset itself. A failure at any one of these layers would fail the entire asset. First, the infrastructure is permissible; Horizen operates as a Layer 3 on Base (an Ethereum Layer 2), which is a neutral, general-purpose network where hosting third-party applications does not taint the native asset. Second, the core application is a privacy-focused blockchain ecosystem free from riba (interest), maisir (gambling), and haram industry exposure. Third, the ZEN token qualifies as recognized digital property (Mal). A digital asset becomes property when it is an exclusive, protocol-recognized right of control that presently exists, is ascertainable, transferable, and carries a lawful use. ZEN meets all these criteria as a native protocol position—meaning holders own the digital asset itself, not a redemption claim against an issuer. Based on this matrix, buying and holding ZEN is Halal, as it is the native utility token of a neutral blockchain infrastructure with no core haram business activities. Furthermore, the opt-in mechanism of ZEN Staking is also Halal. Stakers earn rewards funded by protocol fees, sequencer revenue, and partial inflation (DAO treasury bootstrap emissions), which serves as permissible compensation for providing network validation services.

Permissible Aspects

  • Operating as a neutral, privacy-focused Layer 3 blockchain infrastructure on Base.
  • Token utility for paying transaction and gas fees on the network.
  • Governance rights allowing token holders to vote on community proposals (ZENIPs).
  • Native staking rewards sourced from legitimate protocol fees, sequencer revenue, and partial inflation, acting as payment for validation services.

Points of Caution

  • !While the protocol itself does not generate interest, it is unknown whether the Horizen DAO or foundation treasury earns interest on fiat reserves held in conventional banks; however, this does not affect the token's core compliance.
  • !Investors should note that legacy mechanisms like Secure Nodes and Super Nodes were deprecated in 2024/2025, and current staking relies on the new Horizen 2.0 architecture.

Purification Note

Not applicable. The protocol's revenue is derived entirely from permissible transaction fees, sequencer revenue, and dApp fees. No impure income reaches the token holder, so holding or staking ZEN requires no purification.

BOTTOM LINE

Horizen (ZEN) is a permissible digital asset that powers a privacy-focused Layer 3 blockchain on the Base network. Both buying and holding the token, as well as participating in its native staking mechanism, are considered Halal since the project relies on legitimate transaction fees rather than interest or prohibited activities. As always, final religious authority rests with a qualified Islamic scholar.

How this verdict was reached

This is not an opinion issued by ShariaQuant. It is the output of a documented screening methodology applied to researched facts about Horizen (ZEN), and every row above states the specific evidence that drove it — so the reasoning can be examined rather than taken on trust.

The framework screens three layers — the infrastructure an asset runs on, the application it serves, and the asset itself — and separately tests whether the token qualifies as recognised property (māl): that it presently exists, has an ascertainable supply, can be held and transferred, and carries a genuine lawful use. A failure at any single layer fails the asset.

Revenue-purity thresholds follow the AAOIFI screening standard: non-compliant income below 5% of revenue is tolerated and purified, while 5% or above fails the screen.

AAOIFI has not reviewed, approved or endorsed this report or ShariaQuant, and no scholar named in our methodology has reviewed this individual verdict. This is analysis, not a fatwa — final religious authority rests with a qualified scholar.