Ethereum moves to address Layer 2 fragmentation… proposes unified 'Economic Zone' framework

A new unified framework has been proposed to resolve fragmentation in Ethereum (ETH)’s Layer 2 (L2) ecosystem.

According to Cointelegraph on the 29th (local time), developers at Ethereum infrastructure firm Gnosis (GNO) and ZK-based infrastructure developer Zisk, with support from the Ethereum Foundation, unveiled the concept of an “Ethereum Economic Zone (EEZ).” The core of the framework is enabling smart contracts across different rollups to execute synchronously within a single transaction.

Ethereum has introduced multiple Layer 2 rollups to improve scalability, but the process has been criticized for structural limitations in which liquidity, users, and infrastructure are dispersed across networks. EEZ aims to reduce this fragmentation by enabling interaction between rollups without bridges.

If adopted, applications could share infrastructure across multiple rollups while final settlement is handled on the Ethereum mainnet. This is expected to reduce duplicated infrastructure buildout costs and the need for cross-chain transfers.

The project is being developed with participation from Ethereum researchers, major infrastructure providers, and DeFi protocols. More detailed technical architecture and performance metrics are expected to be released in the coming weeks, alongside discussions on standardization for ecosystem-wide adoption.

The proposal also includes plans to establish an “EEZ Alliance.” The organization would be tasked with setting interoperability standards among rollups and coordinating collaboration among ecosystem participants.

The move comes amid ongoing debate over Ethereum’s rollup-centric scaling strategy. According to L2BEAT data, assets worth about $40 billion are currently spread across more than 20 Layer 2 networks, with liquidity split among major networks such as Arbitrum, Base, and Optimism.

Previously, Ethereum co-founder Vitalik Buterin pointed to centralized sequencers and trust-based bridges in some Layer 2 designs as potential vulnerabilities, and has mentioned the need to revisit existing rollup models.

Still, views within the industry are mixed. Karl Floersch, co-founder of Optimism (OP), stressed that rollups must evolve beyond being a mere scaling tool, while Steven Goldfeder of Offchain Labs, developer of Arbitrum (ARB), said rollups remain a core scaling solution.