{"id":12120,"date":"2026-08-20T09:17:13","date_gmt":"2026-08-20T09:17:13","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=12120"},"modified":"2026-08-20T09:17:13","modified_gmt":"2026-08-20T09:17:13","slug":"gnosis-136-rally-masks-a-coming-350000-token-liquidity-shock","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=12120","title":{"rendered":"Gnosis\u2019 $136 rally masks a coming 350,000-token liquidity shock"},"content":{"rendered":"<p><img decoding=\"async\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/gnosis-validator-model-retirement.jpg\" \/><\/p>\n<div data-single-article-content=\"\">\n<p>GnosisDAO has approved a plan to retire Gnosis Chain\u2019s standalone Layer 1, a shift that will unlock roughly 350,000 staked GNO.<\/p>\n<p>Under GIP-153, Gnosis Chain will become a zero-knowledge-proven Ethereum Economic Zone rollup that settles directly to Ethereum every block. The network will eventually retire its independent validator set and inherit security from Ethereum validators instead.<\/p>\n<p>That change would unlock about 350,000 GNO currently committed to staking, equivalent to roughly 27% of the token\u2019s circulating supply. The tokens are already counted as circulating supply, but ending staking would make them liquid again and remove their current role in securing Gnosis Chain.<\/p>\n<p>GNO rallied 10% to as high as about $136 around the governance decision, its highest level since May, <em>CryptoSlate<\/em> data showed. The move came despite the prospect of a sizable increase in liquid GNO and reflected investor attention on Gnosis\u2019 deeper integration with Ethereum.<\/p>\n<p>The approval is a direction-level mandate rather than a final launch decision. GnosisDAO did not approve funding or a completed technical design, and the first EEZ version is targeted for around December 2026 or January 2027, depending on required infrastructure being ready.<\/p>\n<h2>GNO loses its staking role as Gnosis turns to Ethereum<\/h2>\n<p>The transition will also force Gnosis to rethink GNO\u2019s economics after staking disappears.<\/p>\n<aside id=\"cs-inline-newsletter-1\" class=\"cs-inline-newsletter\" data-inline-newsletter=\"\" data-newsletter-placement=\"article-midpoint\" data-newsletter-pending-label=\"Joining\u2026\" data-newsletter-pending-status=\"Joining the Daily Brief\u2026\" data-newsletter-email-required-message=\"Before sending, please provide your email address.\" aria-labelledby=\"cs-inline-newsletter-1-title\" aria-describedby=\"cs-inline-newsletter-1-copy\">\n<div class=\"cs-inline-newsletter__inner\">\n<div class=\"cs-inline-newsletter__content\"> <span class=\"cs-inline-newsletter__eyebrow\"> <i class=\"fa-regular fa-envelope\" aria-hidden=\"true\"\/> The Daily Brief <\/span><\/p>\n<h2 id=\"cs-inline-newsletter-1-title\" class=\"cs-inline-newsletter__title\">The signal, before the noise.<\/h2>\n<p id=\"cs-inline-newsletter-1-copy\" class=\"cs-inline-newsletter__copy\">Start your day with the crypto stories moving markets, decoded by CryptoSlate\u2019s editors.<\/p>\n<\/div>\n<div class=\"cs-inline-newsletter__form-shell\">\n<p class=\"cs-inline-newsletter__form-heading\">One email. Everything that matters.<\/p>\n<p id=\"cs-inline-newsletter-1-privacy\" class=\"cs-inline-newsletter__privacy\">Free to join. Unsubscribe any time.<\/p>\n<p> <i class=\"fa-regular fa-circle-xmark\" aria-hidden=\"true\"\/> <span>Whoops, looks like there was a problem. Please try again.<\/span><\/p>\n<p> <i class=\"fa-regular fa-circle-check\" aria-hidden=\"true\"\/> <span><strong>You\u2019re on the list.<\/strong> Your next Daily Brief is on its way.<\/span><\/p>\n<\/div>\n<\/div>\n<\/aside>\n<p>Gnosis currently pays validator rewards from its treasury because network fees cover only a fraction of its security costs. GIP-153 estimates that model dilutes non-stakers by about 2.3% annually. Once the validator set is retired, the staking subsidy would end and Gnosis intends to link GNO instead to revenue generated by the rollup.<\/p>\n<p>The exact mechanism remains unresolved. Gnosis is considering options including fee sharing or GNO buybacks tied to network revenue, with a separate governance proposal expected after the economics of operating the rollup become clearer.<\/p>\n<p>The broader bet is that Gnosis can give applications direct access to Ethereum\u2019s liquidity without requiring users to bridge assets between separate networks. Its planned synchronous composability would allow a Gnosis contract to call an Ethereum contract and use the result within the same atomic transaction.<\/p>\n<p>Martin Koeppelmann, Co-Founder and CEO, told <em>CryptoSlate<\/em>:<\/p>\n<blockquote>\n<p>\u201cEthereum is not scaling into one economy; it&#8217;s scaling into a hundred islands. This proposal is Gnosis choosing the other path. After the transition, anyone with a mainnet wallet will be able to use a Gnosis dapp in a single transaction, and a Gnosis account will be able to use anything on Ethereum. Same block, no bridges.\u201d<\/p>\n<\/blockquote>\n<p>Notably, several DeFi projects, including Aave, Spark, Fluid, CoW Swap, Safe, Centrifuge and other projects have committed to building consumer-focused products in the environment.<\/p>\n<p>The transition comes with a decentralization trade-off. Gnosis Ltd. is expected to operate the sequencer that initially orders transactions and produces blocks, while proofs and settlement move to Ethereum. GIP-153 explicitly describes the move toward a less decentralized execution layer as deliberate.<\/p>\n<p>For GNO holders, the change therefore replaces one established source of token utility with an unfinished revenue model while simultaneously releasing a large block of staked tokens back into liquid markets.<\/p>\n<\/div>\n<p>Adoption,Featured,Layer-2,Technology#Gnosis #rally #masks #coming #350000token #liquidity #shock1787217433<\/p>\n","protected":false},"excerpt":{"rendered":"<p>GnosisDAO has approved a plan to retire Gnosis Chain\u2019s standalone Layer 1, a shift that will unlock roughly 350,000 staked GNO. Under GIP-153, Gnosis Chain will become a zero-knowledge-proven Ethereum Economic Zone rollup that settles directly to Ethereum every block. The network will eventually retire its independent validator set and inherit security from Ethereum validators<\/p>\n","protected":false},"author":1,"featured_media":12121,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[6375,1560,6374,208,1687,541,469],"class_list":["post-12120","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ethereum","tag-350000token","tag-coming","tag-gnosis","tag-liquidity","tag-masks","tag-rally","tag-shock"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Gnosis\u2019 $136 rally masks a coming 350,000-token liquidity shock - Crypto News: Latest Cryptocurrency News and Analysis<\/title>\n<meta name=\"description\" content=\"Gnosis&#039; GNO token surged to a three-month high after the DAO approved an Ethereum rollup transition that will eventually retire staking.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptonews.uk.com\/?p=12120\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gnosis\u2019 $136 rally masks a coming 350,000-token liquidity shock\" \/>\n<meta property=\"og:description\" content=\"Gnosis&#039; 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