Zero Network Announces Shutdown to Focus on Core Business
Ethereum On May 22, 2026, the Layer 2 network Zero Network announced that it would gradually shut down after approximately 18 months of operation and refocus its resources on the API and wallet services of its parent company, Zerion.Incubated by wallet service provider Zerion and launched in November 2024, Zero Network’s core vision was to provide a “gas-free” transaction experience. The team stated that while the vision of building a gas-free rollup remains valid, maintaining an independent blockchain is not the best way to achieve it.
The shutdown of Zero Network means users must transfer their assets—including ETH, tokens, and NFTs—out of Zero Network via cross-chain transfers by July 31, 2026; the ability to deposit assets has already been suspended.
Challenges of the “Gas-Free” Model
Zero Network was once positioned as the first EVM-compatible, fully gas-free rollup, designed to lower the barrier to entry for users and provide a “zero-fee” on-chain experience. “Gas-free transactions” refer to an innovative blockchain approach that allows users to execute transactions without paying traditional gas fees, designed to address the barriers to participation caused by high gas fees on networks such as Ethereum. This model typically relies on relay servers or third-party services to cover gas fees, with costs recouped through subscription fees, token payments, or external subsidies.
Although gas-free transactions offer advantages such as reduced user costs, simplified transaction processes, and improved efficiency and scalability, they also face challenges—for example, reliance on relay servers or third-party services can complicate the transaction process. The shutdown of Zero Network may also reflect the difficulties in practical operations regarding the sustainability of completely waiving gas fees and how to effectively recoup costs.
Fierce Competition in the L2 Space and Projects’ Survival Struggles
The shutdown of Zero Network is seen as a microcosm of the intensifying competition in the L2 space. As L2 solutions—Ethereum—continue to emerge, users are placing increasingly higher demands on stability and operational capabilities when selecting new chains, in addition to performance metrics (such as TPS and confirmation time) and transaction costs. Incidents like Zero Network’s prolonged halt in block production—which once lasted over three weeks—can severely erode user trust, even if officials claim user funds remain safe and intact.
In an environment where capital and developer attention are scarce, many small L2 projects face a dire survival situation due to a lack of sustained growth momentum. Zero Network’s decision to refocus its resources on Zerion’s core wallet and API business also reflects the challenges facing the independent L1/L2 narrative in the current market environment.
It is worth noting that the term “Zero Networks” currently circulating in the market may also refer to an Israeli cybersecurity company founded in 2019. This company specializes in micro-segmentation and zero-trust solutions and completed a $55 million Series C funding round in June 2025, bringing its total funding to over $100 million. This is not the same entity as the Layer 2 network “Ethereum” (Zero Network) discussed in this article; readers are advised to distinguish between the two.
