Zilliqa to Transition to Ethereum Layer 2, Retaining ZIL Token

Shenchao TechFlow reported on November 5 that, according to Zilliqa's official announcement, the project will transition from a standalone Layer 1 to an Ethereum Layer 2 designed for regulated institutions, named Zilliqa Institutional Layer. ZIL will remain the network's sole token, and holders do not need to take any action at present.

The project team said that the standalone Layer 1's usage and ecosystem growth had not reached sustainable levels, funding and liquidity had declined, and recent security incidents also highlighted the cost of independent operations. The team will publish technical details before the transition, including the impact on holders, exchanges, and stakers.

Source: Shenchao TechFlow