What Is REZ Token? The Energy Token for Web3 Sustainability

Web3 is undergoing a sustainability makeover. After Ethereum’s transition to proof of stake (PoS) slashed network energy use by an estimated 99.95%, a new wave of infrastructure is pushing efficiency and security further. One of the most notable developments is restaking. At the center of that conversation is REZ, the native token of Renzo Protocol. While REZ is not an electricity-backed asset, it effectively acts as an “energy token” for Web3 by helping secure PoS infrastructure more efficiently, aligning capital incentives with lower-carbon blockchain operations.

This article explains what REZ is, how it works in Renzo’s liquid restaking design, and why it matters for Web3 sustainability.

Quick definition: REZ by Renzo Protocol

• REZ is the native token of Renzo Protocol, a liquid restaking protocol built on top of EigenLayer. Liquid restaking lets users stake ETH, receive a liquid receipt token (ezETH), and simultaneously secure additional services called Actively Validated Services (AVSs). See the Renzo documentation for a protocol overview and design goals at the Renzo docs.
• REZ primarily serves governance and incentive functions within the Renzo ecosystem, aligning operators, liquidity providers, and users around the protocol’s parameters and growth. You can review project fundamentals on Binance Research’s Renzo profile and market data on CoinGecko.

Authoritative references:

• Renzo overview and docs: Renzo Documentation
• Binance Research profile: Binance Research — Renzo
• Market data and circulating supply: CoinGecko — Renzo (REZ)
• EigenLayer architecture and risk overview: EigenLayer Docs

How liquid restaking works (and why it’s efficient)

Traditional staking secures one network with one stake. Restaking extends that security to multiple services (AVSs) without duplicating the base economic collateral. In Renzo’s model:

• Users deposit ETH and receive ezETH, a liquid restaking token representing their position and rewards.
• EigenLayer reuses that staked capital to secure AVSs such as data availability layers (e.g., EigenDA), oracles, and other middleware that otherwise would need separate validator sets and incentives.
• REZ coordinates governance and incentives in Renzo to bootstrap liquidity, delegate preferences, and operator alignment.

By “stacking” security, restaking can reduce the marginal infrastructure and capital needed to secure new services. That design supports a more resource-efficient Web3, complementing PoS’s energy profile. For a primer on AVSs and the modular security model, see EigenLayer’s architecture and EigenDA documentation.

References:

• AVS and restaking model: EigenLayer Docs
• EigenDA overview: EigenDA Overview

Why REZ is relevant to Web3 sustainability

• PoS efficiency baseline: Ethereum’s upgrade to PoS reduced consensus energy use by orders of magnitude compared to proof of work. This cuts the operational footprint that underpins many DeFi and restaking activities. See Ethereum’s energy overview on Ethereum.org.
• Shared security reduces duplication: With restaking, new services can borrow security from the base stake rather than spinning up isolated validator networks, avoiding redundant hardware and energy draw per service.
• Capital efficiency aligns with “less for more”: The same economic collateral secures more infrastructure. While energy savings are indirect, the model supports a lower-overhead pathway to scaling middleware.

Contextual references:

• Ethereum’s energy consumption drop after the Merge: Ethereum Energy Consumption
• Broader digital infrastructure energy trends: IEA — Data Centres and Data Transmission Networks

Note: Energy outcomes depend on implementation details. Restaking can also concentrate risk or create correlated slashing vectors if not designed carefully.

Token utility and design (high level)

REZ is designed to:

• Govern protocol parameters and stewardship, including delegation preferences and operator frameworks.
• Incentivize liquidity and participation, aligning stakeholders during bootstrapping phases and beyond.
• Coordinate with ezETH’s growth: as more users adopt ezETH for liquidity, the protocol can expand restaked security to additional AVSs.

Because token policies and emissions schedules can evolve via governance, always verify the latest details in Renzo Documentation and Binance Research.

Risks you should understand

Restaking is powerful but introduces layered risks:

• Smart contract risk: Multiple protocols are involved (staking, liquid restaking, AVSs). A bug in any leg of the stack can impact funds.
• Slashing and correlation: If many AVSs rely on the same stake, failures can cascade. Vitalik Buterin has discussed not overloading Ethereum consensus and the dangers of excessive coupling in his blog post “Don’t overload Ethereum’s consensus.”
• Liquidity and depeg risk: Liquid restaking tokens like ezETH can trade at discounts or premiums relative to underlying value, especially during stress.
• Governance and incentive shifts: As tokenomics or parameters evolve, outcomes for holders can change.
• Regulatory uncertainty: Tokens involved in yield-bearing structures or onchain markets can face changing regulatory interpretations across jurisdictions.

References:

• Vitalik’s caution on consensus overload: Vitalik — Don’t overload Ethereum’s consensus

How REZ fits into the sustainability landscape

REZ is not a REC, carbon, or electricity token. It contributes to sustainability by improving the efficiency-security frontier of Web3 infrastructure. For readers interested in explicitly energy- or climate-focused blockchain efforts, explore:

• Energy Web Foundation’s initiatives for grid and renewable integration: Energy Web
• Granular certificates and 24/7 clean energy tracking standards: EnergyTag
• Filecoin Green’s work on verifiable environmental claims for storage networks: Filecoin Green

These initiatives focus on energy data, certificates, and carbon accounting, while restaking focuses on shared cryptoeconomic security. Together, they point toward a modular, lower-overhead Web3.

Current status and adoption

• Market and listings: Track REZ availability, circulating supply, and price on CoinGecko — Renzo (REZ).
• Protocol maturity: EigenLayer and AVS ecosystems grew rapidly through 2024 and into 2025, with AVSs like EigenDA moving into production-oriented environments. Review the latest technical status and compatibility in EigenLayer Docs and EigenDA Overview.
• Research coverage: Binance Research provides ongoing updates on Renzo’s fundamentals and token characteristics.

Because growth phases can be volatile, use official documentation and reputable analytics sources before making decisions.

Best practices for holding REZ and ezETH

• Self-custody: Use a hardware wallet when interacting with DeFi or holding governance tokens to minimize key-exposure risk.
• Transaction hygiene: Prefer allowlist dApps, verify contract addresses from official documentation, and use spend limits rather than unlimited approvals where possible.
• Network awareness: ezETH and related assets operate primarily on Ethereum. Confirm the chain and token standard before transferring.

If you’re considering a hardware wallet, OneKey offers open-source firmware, EVM compatibility for Ethereum-based assets like REZ and ezETH, and a straightforward UX for signing DeFi transactions. That combination helps you participate in restaking governance and liquidity while keeping private keys isolated on a secure device.

Getting started

• Learn the protocol: Renzo Documentation
• Understand restaking’s architecture and risks: EigenLayer Docs
• Review market data: CoinGecko — Renzo (REZ)
• Explore AVS examples and data availability: EigenDA Overview
• Keep the energy context in view: Ethereum Energy Consumption and IEA — Data Centres

As Web3 matures, sustainability is increasingly about building more with less: less hardware overhead, fewer redundant validators, and more security per unit of capital. REZ, by coordinating incentives around liquid restaking, helps “power” that transition—even if it’s not an electricity token—by pushing the ecosystem toward an efficient, modular, and cleaner-by-design future.