GnosisDAO Votes to Merge Gnosis Chain with Ethereum

GnosisDAO has officially approved a plan to retire the standalone Gnosis Chain. Under the new proposal, the network will transition into a zero knowledge rollup that settles directly on Ethereum. This shift means the network will eventually stop using its own independent validator set, choosing instead to rely on Ethereum for security.

The update is a major change for the GNO token. Retiring the current staking model will unlock approximately 350,000 staked GNO tokens, which represents roughly 27% of the total circulating supply. While these tokens are technically already counted as circulating, this move will make them liquid and available to trade once again. Despite this incoming supply, the GNO price recently saw a 10% jump as traders reacted to the deeper integration with Ethereum.

This is a long term play, with the transition expected to take until late 2026 or early 2027. Since the current staking model provides rewards that dilute non stakers, Gnosis plans to rethink its token economics entirely. The team is looking into new models like fee sharing or token buybacks to keep GNO relevant once the transition is complete.

By moving to an Ethereum Economic Zone, Gnosis aims to let users interact with Ethereum apps without the need for bridges. While this offers better speed and usability, it does involve a trade off in decentralization, as Gnosis Ltd will initially manage the transaction sequencer. Investors should keep a close eye on future governance votes, as the project still needs to finalize its technical design and long term revenue strategy.