Back to News
CryptoJobsEthereumInterest RatesFederal ReserveDefi

Ethereum Developers Propose Solution to L2 Fragmentation with Economic Zone

The Ethereum Foundation has launched the Ethereum Economic Zone to tackle L2 fragmentation, promoting shared infrastructure and liquidity.

James Park
March 30, 2026 1 min read
Ethereum Developers Propose Solution to L2 Fragmentation with Economic Zone

The Ethereum Foundation, in collaboration with Gnosis and Zisk, has introduced a new initiative called the Ethereum Economic Zone (EEZ) aimed at addressing the fragmentation of Layer 2 (L2) networks. This framework seeks to unify various L2 solutions by allowing applications to share infrastructure while maintaining computations on the Ethereum main layer.

The EEZ will facilitate shared liquidity and seamless transactions between Layer 1 (L1) and L2, reducing the need for cross-chain transfers and service duplication. By default, the EEZ will utilize ETH for gas fees, streamlining interactions across different ecosystems.

As part of this initiative, an informal group known as the EEZ Alliance will be established to set standards and support the implementation of the EEZ. Founding members include notable projects such as Aave, Centrifuge, and xStocks. The Economic Zone will also be registered as a Swiss non-profit organization, with all related software to be released as open-source.

Strategic Importance

This move comes as the Ethereum Foundation shifts towards a more sustainable funding model, having paused its grant program in mid-2025. The foundation has identified scaling the main network and improving L2 interoperability as key priorities, aligning with the objectives of the EEZ.

Ethereum co-founder Vitalik Buterin has previously remarked that the original concept of Layer 2 solutions is becoming outdated, advocating for a reevaluation of ecosystem development strategies. The Ethereum Foundation has also emphasized the need for L2 solutions to provide distinct features.

Significant Staking Activities

In a related development, the Ethereum Foundation has significantly increased its ETH staking, locking 22,517 ETH valued at $46.2 million on March 30, marking a record for the organization. The foundation plans to initially stake a total of 70,000 ETH, with all earnings directed towards ecosystem support. Currently, the foundation manages 147,471 ETH, worth approximately $301 million.

Additionally, the Ethereum Foundation recently unveiled a roadmap aimed at safeguarding the network against quantum computing threats.

Ethereum Economic Zone Aims to Unify Layer 2 Networks — Mercation