Zilliqa will transition to Ethereum Layer 2, retaining the ZIL token

on November 5, according to Zilliqa's official announcement, the project will transition from a standalone Layer 1 to a regulated Ethereum Layer 2 named Zilliqa Institutional Layer. ZIL will remain the network's sole token, and holders currently do not need to take any action.

The project team stated that usage and ecosystem growth on the standalone Layer 1 fell short of sustainable levels, accompanied by shrinking capital and liquidity. Recent security incidents have also underscored the costs of independent operations. The team will release technical details ahead of the transition, detailing the impacts on holders, exchanges, and stakers.