Zilliqa abandons its standalone Layer 1 blockchain after nine years to pivot as an Ethereum L2 focused on institutional adoption.
Tech & Launches ·
Zilliqa has announced it will discontinue operations as an independent Layer 1 blockchain after nine years and transition to become an Ethereum Layer 2, redirecting its focus toward institutional adoption. The shift marks a strategic pivot away from maintaining a standalone consensus layer and validator network toward building atop Ethereum's settlement layer.
The move reflects the ongoing consolidation within the broader Layer 1 ecosystem, where projects must sustain independent security budgets, validator incentives, and network maintenance indefinitely. By repositioning as an L2, Zilliqa trades the operational burden of securing its own base layer for the ability to inherit Ethereum's consensus guarantees while retaining application-level customization for its target market.
The transition leaves open questions around the timeline for sunsetting the standalone chain, migration paths for existing token holders and applications, and how institutional-focused features will be implemented on the new architecture. No details have been disclosed regarding whether the existing ZIL token will continue to function or be replaced under the new structure.