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Gnosis Chain plans Ethereum-settled rollup, retires its validator set

If approved in the implementation phase, GNO staking would end treasury-funded rewards and the chain would settle to Ethereum L1 every Ethereum block.

Reported · Written up by our desk · Market Structure

Gnosis Chain is transitioning from a standalone Layer 1 to an Ethereum-settled rollup, with its independent validator set retired, according to an announcement from Gnosis Chain and a proposal published on GnosisDAO’s governance forum. The plan is designed to make Gnosis Chain a Gnosis-operated instance within the Ethereum Economic Zone framework.

For GNO stakers, the approved direction would unlock roughly 350,000 GNO once the validator set sunsets and would end the treasury-funded staking subsidy. For users and developers, xDAI would remain the gas token, while addresses, balances and contract state would continue without migration to a new chain.

The proposal says the network would produce blocks every two seconds, prove its state every Ethereum block, and settle to Ethereum Layer 1. It also calls for “atomic access” from Gnosis to Ethereum contracts and liquidity, with Ethereum to Gnosis calls and broader cross-instance composability deferred beyond launch.

Gnosis Ltd will initially run a centralized composer that orders transactions, builds blocks and submits them for proving and settlement. The announcement frames the shift as a strategic direction rather than a final technical design, noting the vote requested no funding, and positions it against prior incentives that relied on GNO issuance and DAO treasury support as validator counts declined.

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