As the industry heats up, the cost of transactions on Ethereum continues to rise. An uptick in user demand for decentralized finance applications has made low value transactions on the network less economical. While this signals a positive inflection point for the industry as a whole, it presents challenges for users and developers alike.
To ensure high demand doesn’t mean low adoption, we’ve teamed up with xDai, an Ethereum sidechain designed for fast and inexpensive transactions, providing a developer-friendly environment that retains real world economic incentives.
As part of the partnership, we’ve invested in the xDai Ecosystem Fund to become significant holders of the STAKE Governance token, with a lock-in period of one year. This investment, committed in part with the Gnosis GNO token, further aligns the objectives of xDai and Gnosis communities. In addition, we’ll bring our product suite to xDai, including deployments of:
- Gnosis Protocol, a top-ten Ethereum DEX by volume
- Gnosis Safe Multisig, a wallet holding more than $1 Billion in assets
- Conditional tokens framework, built on by prediction markets Omen and Polymarket
We’ll also assist in deploying Omen prediction markets on xDai, support xDai in future releases of the OpenEthereum client, and back further development of the Burner Wallet, as well as other critical tooling that makes decentralized applications like prediction markets more accessible to users.
We’re looking forward to this collaboration bolstering the perfect staging environment for Ethereum, due to its migration capabilities, token economics, and low transaction costs. Because Gnosis is long on the Ethereum ecosystem, we believe it’s important to invest in infrastructure that will keep bringing users and development to our ecosystem.
