TechFlow reported that the Horizen DAO forum has released ZenIP 42407 proposal aiming to comprehensively reshape Horizen's token economy model to adapt to its transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS). The proposal includes the following key changes:
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Block reward distribution adjustment: The Horizen Foundation's share will increase from 20% to 32.5%, the DAO treasury will receive 27.5%, and validator rewards will account for 40%.
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Token issuance and unlocking: Upon migration to Horizen 2.0, only 25% will be immediately released, while the remaining 75% will be linearly unlocked over 48 months.
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New staking reward mechanism: Validators and delegators will receive rewards through a smoothly decreasing issuance schedule.
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Elimination of halving mechanism: A progressive emission reduction will replace the traditional block reward halving to reduce market volatility.
