Zilliqa announced it will transition from a standalone Layer 1 blockchain to an Ethereum Layer 2 network named the Zilliqa Institutional Layer (ZIL), targeting regulated institutions. The team cited insufficient usage, capital, and liquidity after nine years of independent operation, along with recent security incidents that highlighted the high costs of maintaining a separate chain. The ZIL token will be retained, and current holders are not required to take any action at this stage. Technical details regarding the migration will be announced in advance, with any future swap or migration processes governed exclusively by official website announcements.