The GnosisDAO governing community has made a fateful decision: GNO token holders overwhelmingly approved the transformation of Gnosis Chain from an autonomous layer-1 blockchain into a ZK-rollup with settlements directly on the Ethereum network. The vote, which concluded on August 19, marks a watershed in the evolution of one of the ecosystem's oldest projects.
The voting results on proposal GIP-153 are impressive: 123,158 votes "in favor" against just 115 "against" and 151 abstentions. Turnout reached 123,425 votes against a required quorum of 75,000, highlighting the community's high engagement in the network's strategic development.
The Essence of the Transformation
Gnosis Chain will become the first practical implementation of the Ethereum Economic Zone (EEZ) concept — a framework for interconnected rollups announced in March of this year. The key change is the abandonment of its own validator set: network security will now be provided by Ethereum validators, and settlements will move to the mainnet of the second-largest cryptocurrency by market capitalization.
It is important to note that the transition will be nearly seamless for users. Addresses, balances, and smart contract states will be fully preserved, and xDAI will remain the token for paying fees. No migrations of assets or applications will be required.
Impact on Staking and the GNO Economy
The most significant changes will affect the staking mechanism. After abandoning its own validator set, approximately 350,000 GNO coins will be unlocked — this is about 27% of the total token supply. Treasury subsidies from the DAO for locking tokens will cease, requiring a revision of the economic model.
Developers have already announced plans to tie the GNO economy to network fees. Among the options under consideration are distributing part of the revenue among holders or buying back the token. The specific model will be put to a separate vote.
Timeline and Market Reaction
The first launch is scheduled for the period from December 2026 to January 2027. A full version of EEZ with two-way interaction between networks and real-time ZK-proofs is expected during 2027. The market has responded positively to the news: over the past 24 hours, GNO has risen by more than 7%, reaching the $123 mark.
Strategic Context
Gnosis's decision is a recognition of a fundamental reality: a standalone L1 with lower security and liquidity cannot compete with Ethereum for user attention. At the same time, transitioning to a regular L2 would not solve the problem amid more than 100 competing solutions. EEZ offers a third path — deep integration with Ethereum while preserving a unique economic model.
The proposal's authors honestly acknowledge the compromise on decentralization: the current EEZ architecture with fast block production does not allow maintaining a large independent validator set, and some functions will be more centralized in the first phase. This is a deliberate trade-off for scalability and compatibility.
My analysis: this move could set a precedent for other L1 networks contemplating strategic partnerships with Ethereum. However, the key question is whether Gnosis can preserve its identity and unique advantages while becoming part of a larger ecosystem. In the coming months, we will see how successfully the project implements its ambitious transition plan.