Zilliqa is transitioning from an independent Layer 1 to an Ethereum Layer 2, with a focus on regulated institutions. The new network will be named Zilliqa Institutional Layer (ZIL). Zilliqa stated that usage on its legacy chain is no longer sufficient to sustain independent operations. The new network will settle via Ethereum, integrate identity and compliance mechanisms, and establish a permissioned market for verified institutional participants. Zilliqa noted that token holders do not need to take any action at this time, and technical details will be released ahead of the transition.