Gnosis Chain to become Ethereum-based rollup, unlocking 27% of GNO supply

GnosisDAO votes to end standalone blockchain

GnosisDAO, the group that governs the Gnosis Chain, has approved a plan to stop running its own independent blockchain. Instead, Gnosis Chain will become a type of Ethereum-based network called a rollup. This change will release about 350,000 GNO tokens that were locked up in staking.

A rollup is a way to process transactions on a separate network and then record the results on Ethereum, which is a larger and more secure blockchain. This move means Gnosis Chain will no longer need its own validators—people who help secure the network by checking transactions.

Main changes and numbers

• The plan, called GIP-153, was approved by GnosisDAO.
• Gnosis Chain will settle transactions directly on Ethereum every block.
• About 350,000 GNO tokens, equal to 27% of the tokens currently in circulation, will be unlocked.
• The tokens were already counted as part of the circulating supply but were locked in staking contracts.
• GNO token price rose 10% to around $136 after the vote.

What happens to staked GNO tokens

Gnosis Chain currently uses a system where people lock up GNO tokens to help secure the network. These people are called validators, and they earn rewards for their work. However, the network’s fees do not cover the cost of these rewards, so GnosisDAO has been paying the difference from its treasury.

With the move to a rollup, Gnosis Chain will no longer need its own validators. This means the 350,000 staked GNO tokens will be released back into the market. The plan also ends the staking rewards, which the source says have been diluting non-stakers by about 2.3% per year.

New role for GNO tokens

GnosisDAO plans to link GNO tokens to the revenue generated by the new rollup. The exact way this will work is still being decided. Possible options include sharing fees with GNO holders or using network revenue to buy back GNO tokens.

A separate governance proposal will be created after the rollup’s economics become clearer.

What is still uncertain

• Funding for the transition has not been approved yet.
• The technical design is not finalized.
• The first version of the new rollup is expected around December 2026 or January 2027, but this depends on infrastructure readiness.
• The exact mechanism for linking GNO tokens to rollup revenue is unresolved.
• Gnosis Ltd. will initially operate the sequencer, which orders transactions, but the long-term plan for decentralization is unclear.

Why the change matters

The move is meant to make Gnosis Chain more connected to Ethereum. This could allow users to interact with applications on both networks in a single transaction without needing to bridge assets between them. Several projects, including Aave, Spark, and CoW Swap, have committed to building on the new Gnosis rollup.

However, the change also means Gnosis Chain will rely on Ethereum for security instead of its own validators. This reduces the need for staked GNO tokens, which could increase the supply of GNO available for trading.

Sources

• CryptoSlate