Status Unveils First Gasless L2 on Linea With 100% Community Yield Allocation Mechanism

Business Insider

09-07-2025

The new Status L2 rewrites rollup economics by replacing sequencer fees with native yield and native app revenues, unlocking friction-free onboarding for games, social apps and DeFi.
Status (SNT), a pioneer in decentralised 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 marks a major milestone for Ethereum scalability and sustainability as Status Network introduces a radically different revenue model: eliminating transaction fees entirely while funding builders and liquidity providers through bridged yield and native app fees. Users can follow Status for updates: https://x.com/StatusL2
As transaction costs across L2s are currently trending towards zero, Status Network breaks from sequencer fee dependence and instead earns revenue from yield-bearing bridged assets and native application activity.
'We designed Status Network so developers can ship games, seamless social experiences, and DeFi protocols without forcing users to preload gas or builders to manage paymaster contracts,' said Cyprien Grau, Lead at Status Network. 'By rehypothecating yield-bearing TVL and sharing every cent of net yield with the community, we're aligning incentives for all L2 stakeholders: builders get funding, LPs get sustainable returns, and users get a true free-to-play blockchain.'
Status Network carries forward the founding principles of the original Status app: privacy, sovereignty, and open access. It's designed as a seamless, high-performance platform where communities can exchange, build, and govern freely. Users can learn more about Status Network: https://status.network/
A Business Model Built for the Next Decade
Yield, not gas: Bridged ETH and stablecoins are converted into yield-bearing equivalents (e.g., stETH, sDAI). The protocol captures that yield along with fees from native apps rather than relying on sequencer revenues.
Sustainable flywheel: Gasless UX and organic yield attract more users, deposits, and app usage, generating a higher native L2 yield, attracting yet more users. And, pending governance approval, part of that native yield can be used to fuel SNT buy-backs and burns, further aligning the Status community with the success of the network.
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.
Through its built-in public funding pool, Status Network will fund 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, further contributing to the zkEVM stack's long-term sustainability. Status will also play a crucial role in both the Linea and broader Ethereum ecosystems; further details will be disclosed soon.
'We're proud to see Status Network launch the first gasless Layer 2 powered by the Linea zkEVM technology stack,' said Declan Fox, Head of Linea. 'We aim to build better economics and governance, in alignment with Ethereum's core values. Status supports builders and public goods while providing free transactions at scale - exactly the kind of mission-driven approach we aim to empower. With the Linea stack's high throughput, low latency, and fast finality, we're enabling the performance needed for apps to grow, thrive, and get funded, whilst anchoring into the same root of trust: Ethereum.'
Built for Games, Social & DeFi - With Better Privacy
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 finally 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 UX, 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.
As anyone can get started without a wallet balance or history, gasless transactions strongly enhance account anonymity, enabling better privacy for transfers and applications.
Availability & Roadmap
Status Network's public testnet v1 is now live with fully gasless transactions. Testnet v2, featuring RLN-based spam protection and native yield routing, launches in October 2025, alongside a pre-deposit campaign to kickstart the bridged yield. Mainnet launch is targeted for Q1 2026. Developers can start building today at https://statusnetwork.typeform.com/partner
Status Network is the first Ethereum L2 with gas-free transactions at scale. Funded by native yield and app fees, it redistributes 100% of net revenues to its community, powering sustainable liquidity incentives, a public funding pool, and SNT buy-backs. Built on the Linea zkEVM stack, it enables frictionless onboarding for games, social apps, and DeFi while remaining fully aligned with Ethereum security and values.
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