Zilliqa abandons standalone Layer 1 after nine years, pivots to Ethereum L2 for institutions

After nine years, Zilliqa says its standalone Layer 1 "hasn't worked" and is pivoting to become the Zilliqa Institutional Layer, an Ethereum Layer 2 for regulated institutions. The project cites insufficient usage, dried-up funding and liquidity for standalone L1s, and recent hacks exposing the cost of securing a chain alone. The new network will feature Ethereum-secured settlement, compliance via vLEIs, and a permissioned market for verified institutions. Liechtenstein's state-backed trust network will operate the sequencer. ZIL holders need no action; technical details and any migration will be announced first on official channels.

✨ AI summary of the linked source — not editorial content.

Explore the topic

• L2
• Ethereum
• ETH
• Layer 1