Zenon (ZNN) Project Analysis
About
Overview
Zenon was launched as a POS/MS hybrid cryptocurrency on the 20th March 2019 and proposes a new sharding based decentralized architecture called the Network of Momentum (NoM), designed as an evolution of existing blockchain and DAG architectures.
Use case
The main use case for the Zenon project is intended to solve the issue of network congestion amongst current blockchain solutions.
From the project’s website “Zenon is an evolutionary step in distributed ledger technology, enabling an efficient trust layer for transfer of value and data globally. Based on The Network of Momentum, it proposes a new type of architecture designed to overcome the limitations of current blockchain or DAG-based cryptocurrencies.”
Adoption
The scope for adoption for the Zenon project is potentially a large one as they aim to introduce a more efficient blockchain solution compared to the 1st and 2nd generation blockchains that currently exist.
Currently, there is no minimum working product so there is no current adoption amongst users for the proposed Zenon product and protocol. The test-net for the Network of Momentum is estimated to be launched in March 2020.
However, we can gauge adoption sentiment for the project from the ZNN coin distribution and community engagement later in the review.
Competition
Along with the large addressable markets, Zenon would also have a large number of competitors in the numerous existing blockchain smart contract platforms, from the majors such as Ethereum ($17.9bn market cap), EOS ($4.7bn market cap) or Tezos (USD 670mn) to medium/small up and coming contenders such as Fantom ($39 million), Tomo ($41 million) or Bismuth ($3.9 million).
Ethereum in particular aims to implement PoS and Sharding in its 2.0 implementation, while other smart contract platforms currently focus on specific aspects aimed by Zenon (Zilliqa with sharding, Tezos or EOS with proof of stake, Holochain with non-blockchain based distributed ledger architecture, and so on).
Zenon, apart from being in early stages of development with more room for growth than most competitors, differentiates itself with its new Network of Momentum architecture and its innovative launch strategy aiming at incentivising network participants to keep supporting the network over the coming two-year network development phase.
Products/Features
The core feature of the Zenon project are as follows:
- Network of Momentum (In Progress)
- Satellite (In Progress)
- zApp’s (In progress)
Examples of technologies that the team envisage will be able to benefit from the NoM protocol are:
- Digital Assets
- Decentralized storage solutions
- Artificial Intelligence (A.I) systems
About Summary
| ✅ POSITIVE | ⛔ WEAKNESS | 📝 IMPROVEMENT |
|---|---|---|
| Aiming to address current blockchain deficiencies with the Network of Momentum | Low rate of adoption | Increase brand awareness |
| Limited use case | ||
| No clear and detailed whitepaper |
Tokenomics
Token info
| SYMBOL | ZNN |
| GENESIS BLOCK | MAR 2019 |
| BLOCK EXPLORER | EXPLORER |
| CONSENSUS | MN |
| CIRCULATING SUPPLY | 3,832,739 ZNN |
| MAX TOKEN SUPPLY | N/A |
| % MAX SUPPLY MINTED | N/A |
Financials
| MARKET CAP (30 DAY) | $2,491,252 USD |
| VOLUME (30 DAY) | $2120 USD |
| PRICE | $0.65 |
| VOL TO NETWORK | 0.085% |
| AVG PRICE 30 DAY | $0.82 USD |
| TRADING PAIRS | BTC |
Token distribution
Circulating supply
The Zenon block explorer does not provide a rich list which means we are unable to analyse the distribution amongst the current circulating supply.
There are currently 266 Masternodes in the ZNN network.
41% of the current circulating supply is locked in Masternodes.
Token utility
The current utility of the ZNN coin is securing the ZNN network by locking the coins in a Masternode
Token Summary
| ✅ POSITIVE | ⛔ WEAKNESS | 📝 IMPROVEMENT |
|---|---|---|
| None identified | Possible coin swap when Network of Momentum launched | Improve utility |
| No fixed final supply | ||
| Potentially classed as a security due to ZX distribution algo | ||
| Limited utility |
Team
Experience
There is no publicly listed team for the Zenon project
We are not able to make an assessment on the teams’ experience and skills, aside from development milestones achieved on the Zenon project
Advisors partnerships
There is no listed advisors or partnerships listed for the Zenon project
Development
The roadmap listed on the project website gives a brief outline for the upcoming milestones for the project along with dates for completion [ref].
On the 22nd June 2019 the team disclosed that at block 120555 a network participant experienced a bug that allowed the creation of 2,592,000 ZNN.
The team have worked to resolve the issue with the updated wallet version since 1.2.0 and state that the 2,592,000 created were burnt on the following txid https://explore.zenon.network/address/ZNNisBurnedHereDoNotSendZNNXZZkEhL.
Anticipated upcoming milestones are the lock in of the Pillar Masternodes in Oct 2019, the publishing of the Whitepaper in Dec 2019 and the launch of the Network of Momentum testnet in Mar 2020.
Team Summary
| ✅ POSITIVE | ⛔ WEAKNESS | 📝 IMPROVEMENT |
|---|---|---|
| The team is recruiting to expand | Anonymous team | Increase team transparency |
| No clear information around project funding | ||
| No registered company/foundation |
Code
Audit
For the purposes of this review, we did not conduct a code review on the project.
Code Summary
| ✅ POSITIVE | ⛔ WEAKNESS | 📝 IMPROVEMENT |
|---|---|---|
| Addressed the network exploit | No code audit | External code audit recommended |
| Exploit in code discovered |
Community
Followers
There are less than 1000 followers on the projects social media channels.
Engagement
The majority of the Zenon community involvement and engagement takes place on the Telegram channel, however we recommend Discord.
Both platforms have daily activity in the chat and admin/mods are engaged with any questions from the community replying in a timely manner.
Analysis of the Twitter channel shows a rating of 34.8 engagement per tweet according to RivalIq rating. This is just under 5 times higher than the average engagement rate across all industries [ref].
Governance
There is no currently no formal governance model within the project.
Community Summary
| ✅ POSITIVE | ⛔ WEAKNESS | 📝 IMPROVEMENT |
|---|---|---|
| Organic growth in users | Small community | Increase brand awareness |
| Limited engagement |
Technical analysis
Chart
Chart Analysis
ZNN is currently trading under its initial sale price of 0.0002 satoshi for several months, which can be explained by the emissions from the Masternodes.
Price has recently broken down below the 0.0001 satoshi range, with no previous floor for any price support as reference.
Price Summary
| ✅ POSITIVE | ⛔ WEAKNESS | 📝 IMPROVEMENT |
|---|---|---|
| Listed on more than 1 exchange | No listings on regulated exchanges | |
| More than 1 base pair for trading | Low liquidity |
Summary
Conclusion
In summary the Zenon project scored 45/100 based on our scoring matrix and we would usually rate the project at a D rating. However there does seem to be some promise for the project with its community following. We therefore upgrade our rating and rate the project at a C-.
However there are several areas of weakness for the project that need addressing highlighted throughout the review and also shown below.
| ABOUT | USE CASE ✅ |
COMPETITION ✅ |
ADOPTION ✅ |
FEATURES ✅✅ |
ROADMAP ✅ |
| TEAM | PUBLIC ✅ |
EXPERIENCE ✅ |
DEVELOPMENT ✅ |
PARTNERSHIPS ✅ |
FINANCES ✅✅ |
| CODE | AUDIT | CODEBASE ✅ |
ACTIVITY ✅ |
DOCUMENTATION ✅ |
POR |
| COMMUNITY | COMMUNICATION ✅✅✅ |
FOLLOWERS ✅ |
GOVERNANCE ✅✅ |
ENGAGEMENT ✅ |
WEBSITE ✅ |
| TOKENOMICS | DISTRIBUTION ✅✅ |
BLOCK EXPLORER ✅ |
EMISSIONS ✅ |
UTILITY ✅✅ |
ENTRY ✅✅ |
| PRICE | EXCHANGES ✅ |
LIQUIDITY ✅ |
PAIRINGS ✅✅ |
T.A ✅ |
DATA ✅✅✅ |
| MISC | LEGAL ✅✅✅ |
HYPE ✅✅ |
PLATFORM ✅ |
Breakdown
Disclaimer
- This is a sponsored review.
- This review is intended for educational purposes only and SHOULD NOT be considered as financial advice.
- Before investing in any project we recommend you do your own research + consult a registered financial adviser.
- All information listed is accurate at the time of publishing in October 2019.
Methodology
- We use a combined rating score out of 100, covering all the listed metrics for project reviews.
- Each metric is rated out of 2 including a potential bonus point in every metric.
- We also reserve the right to award a bonus point for outstanding achievement for a project.
- Our rating and grading framework is available here.
