GnosisDAO approves Gnosis Chain for Ethereum Economic Zone

GnosisDAO has approved the transition of Gnosis Chain from a standalone layer-1 network to a ZK-proven Ethereum Economic Zone (EEZ) rollup. The proposal, GIP-153, received significant support, with 123,158 GNO in favor, 115 against, and 151 abstentions from 54 voters. This decision will lead to the retirement of Gnosis Chain’s validator set, with transactions settling on Ethereum, thereby establishing Gnosis Chain as a layer-2 network that utilizes Ethereum’s validators for settlement.

An initial launch of the EEZ is projected for late 2026 or early 2027, contingent on the availability of the necessary technology. This update is expected to enable Gnosis Chain-native smart contracts to interact with Ethereum and leverage the results within the same transaction, providing access to Ethereum mainnet assets and liquidity in an environment optimized for consumers. This capability is described in the proposal as not currently available on existing layer-2 solutions.

The EEZ, developed by Gnosis and ZisK with funding from the Ethereum Foundation, is a framework designed to unify Ethereum’s fragmented layer-2 ecosystem. It aims to facilitate synchronous execution of smart contracts across different rollups without reliance on bridges, addressing a key scaling trade-off in Ethereum by enabling improved throughput while mitigating the separation of liquidity, infrastructure, and user activity across disparate blockchains. Gnosis Chain is positioned to become the first deployed instance of this framework, retaining its existing applications, balances, and xDAI gas token.

Ethereum co-founder Vitalik Buterin had previously expressed concerns regarding centralized sequencers and trusted bridging mechanisms as potential vulnerabilities in some layer-2 network designs. Buterin indicated that the original vision for layer-2 networks and their role in Ethereum required a new direction. Geoffrey Kendrick, global head of digital assets research at Standard Chartered, suggested that the EEZ could reduce dependence on blockchain bridges and enhance activity within the Ethereum ecosystem. The EEZ could also improve the functionality of best defi wallets by allowing for more seamless interaction across different networks.

Kendrick noted that the EEZ would benefit from decreasing the need for bridges, where security incidents often occur, and increasing the usability of assets across EVM chains, anticipating greater activity within the Ethereum ecosystem. He also stated that the EEZ could foster greater composability between assets, allowing smart contracts on participating networks to interact within a single transaction.