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 rate the project at a C-

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