Status Network Launches World’s First Gasless Layer 2 on Testnet

Status, a pioneer in decentralized communication since 2017, has launched the world’s first natively gasless Layer 2 on testnet, built on Consensys’ Linea stack, the leading high-performance zkEVM rollup. This development marks a significant milestone for Ethereum scalability and sustainability, as Status Network introduces a new revenue model that eliminates transaction fees entirely. Instead, the network funds builders and liquidity providers through bridged yield and native app fees.

Status Network’s new Layer 2 (L2) solution rewrites rollup economics by replacing sequencer fees with native yield and native app revenues. This innovation unlocks friction-free onboarding for games, social apps, and decentralized finance (DeFi) applications. The network’s design ensures that developers can create seamless social experiences and DeFi protocols without requiring users to preload gas or manage paymaster contracts. By rehypothecating yield-bearing total value locked (TVL) and sharing every cent of net yield with the community, Status Network aligns incentives for all L2 stakeholders. Builders receive funding, liquidity providers (LPs) get sustainable returns, and users enjoy a true free-to-play blockchain experience.

Cyprien Grau, Lead at Status Network, emphasized the network’s commitment to privacy, sovereignty, and open access. The platform is designed as a seamless, high-performance environment where communities can exchange, build, and govern freely. The ongoing development of Status L2 follows the vision laid out in the original Status whitepaper and was initiated through a community vote by SNT holders, alongside the SNT staking initiative.

Status Network’s business model is built for long-term sustainability. Instead of relying on sequencer revenues, the protocol captures yield from bridged ETH and stablecoins, which are converted into yield-bearing equivalents. This yield, along with fees from native apps, funds the network. The gasless user experience and organic yield attract more users, deposits, and app usage, creating a sustainable flywheel. Pending governance approval, part of the native yield can be used to fuel SNT buy-backs and burns, further aligning the Status community with the network’s success.

Through its built-in public funding pool, Status Network will support open-source protocols and public goods building on Ethereum. As Linea’s first external collaborator, Status is co-developing the bridged yield feature, which will soon be available to all Linea-based L2s. This contribution further enhances the zkEVM stack’s long-term sustainability. Status will also play a crucial role in both the Linea and broader Ethereum ecosystems, with more details to be disclosed soon.

Declan Fox, Head of Linea, expressed pride in seeing Status Network launch the first gasless Layer 2 powered by the Linea zkEVM technology stack. He highlighted the alignment with Ethereum’s core values, supporting builders and public goods while providing free transactions at scale. The Linea stack’s high throughput, low latency, and fast finality enable the performance needed for apps to grow, thrive, and get funded, all while anchoring into the same root of trust: Ethereum.

With fees replaced by native yield, users can interact with apps without needing to bridge tokens or top up gas, creating a frictionless experience. Games can deliver true free-to-play mechanics and support non-financial onchain actions without maintaining gas-sponsoring infrastructure. Social apps benefit from streamlined user onboarding and Web2-like user experience, and DeFi protocols tap into yield-boosted liquidity from day one. Early builders include mobile fishing RPG Cats Fishing, free onchain gacha PonziHero from Spla Labs, and metaverse casino Hash Vegas. Native DeFi apps will be announced in the coming weeks.

Gasless transactions strongly enhance account anonymity, enabling better privacy for transfers and applications. As anyone can get started without a wallet balance or history, this feature significantly improves the user experience and privacy.

Status Network’s public testnet v1 is now live with fully gasless transactions. Testnet v2, featuring RLN-based spam protection and native yield routing, is set to launch in October 2025, alongside a pre-deposit campaign to kickstart the bridged yield. The mainnet launch is targeted for Q1 2026. Developers can start building today on the Status Network platform.