Bullish

Gnosis Chain Proposes Shift to Ethereum ZK Rollup, Ending L1 Status

2026-07-27 16:22:14

Gnosis Chain seeks consensus to become an Ethereum ZK Rollup, citing unsustainable L1 security costs. The move aims for 2-second blocks and native cross-chain composability by 2027.

Woofun AI reports that Gnosis Chain is pursuing a transition from an independent Layer 1 to a ZK Rollup within the Ethereum Economic Zone via GIP-153. The proposal argues that the current L1 model fails to cover security costs without treasury subsidies, causing annual token dilution of approximately 2.3%. Post-transition, the network will produce blocks every 2 seconds, settle on Ethereum L1, and enable single-transaction cross-chain contract calls. GNO staking will unlock, with validators converting to Prover nodes under Gnosis Ltd management. Voting is scheduled for August-September, targeting a January 2027 genesis block.

WOOFUN AI

Impact Assessment · Quick Read

This structural shift addresses the economic unsustainability of niche L1s lacking sufficient fee revenue. By integrating into the Ethereum ecosystem, Gnosis Chain may reduce security costs while enhancing composability. The transition could impact GNO token dynamics as staking incentives are replaced by usage-based fees, potentially altering holder behavior ahead of the 2027 target.
Generated by WOOFUN AI · For reference only, not investment advice

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