Forming an xDai Rollup Working Group

Previously the xDai core team has indicated an interest in anchoring the xDai network to Ethereum using Rollup technology, inheriting the security of L1, and transforming xDai from an Ethereum Sidechain into a L2 Rollup.

This path is attractive and highly pragmatic because it enables users and developers that want to eventually leverage the security and network effect of Ethereum, but need low transaction fees in order for their applications to be practical for their users to continue building, experimenting, and finding product market fit even before layer 2 scalability solutions that offer low fees but also extend the security of layer 1 are production ready. In fact, this exact view has been publicly stated by Vitalik (1) (2) and was cited as one of the primary reasons why 1Hive choose to migrate to xDai last year.

Currently this path is listed as one of three possible future states of the xDai network on the xDai Wiki. With rapid progress (1)(2)(3)(4) being made on EVM compatible optimistic and ZK rollups, I think it’s a good time to start more actively evaluating the technical readiness and economic implications of transitioning from a sidechain into a L2 rollup, and ensure that xDai is still well positioned and maintains its momentum as competing solutions begin to move into production.

To that end, I’d like to form an open, community-driven working group to research the topic, build consensus about possible implementation details, share regular progress updates, and collaborate with relevant stakeholders toward the goal of coordinating an eventual upgrade of the xDai network.

STAKE Consideration

While a possible transition of xDai into a Rollup or Eth 2.0 Shard has been communicated by the POA team, and these communications have already set important expectations for many users, no formal commitment has been made in the xDai roadmap.

Whereas the status quo, and current xDai roadmap does set explicit expectations for how the network consensus will operate and how the $STAKE token will be used. Therefore any proposed transition to a Rollup based consensus model will necessarily have significant impact on the $STAKE token and the xDai validator community and so it is important to get a positive signal from those community members to proceed with this research effort.

I’m not sure the best way to do that, perhaps a Snapshot Vote? In any case the working group would only intend to explore possible implementations details of what a xDai rollup would look like and clarify what the role of $STAKE in such an implementation would be.

In the future the working group would want to put forth a more formal implementation proposal, and seek consensus among all relevant stakeholders to move forward, though I’m currently unsure of what the process for reaching community consensus or governance on xDai’s roadmap actually is and would welcome any guidance in that respect.

Proposed Working Group Activities

  • Evaluate emerging rollup technology and assess readiness for upgrading the xDai network from an Ethereum sidechain into an Ethereum L2 scaling solution that inherits security from L1
  • Evaluate ways that the STAKE token can be repurposed within the context of a rollup solution such that the value of STAKE appreciates along with user adoption and utilization of the Rollup.
  • Propose an implementation plan and seek rough consensus among xDai community stakeholders, including but not limited to the POA Core team, OmniBridge validators, $STAKE holders, xDai Consensus Validators, and xDai User and Developer communities.
  • Share regular updates with the community through forum posts and open calls so that anyone who is interested can stay up to date and informed about the efforts of the working group.

Call for participation

Anyone who is interested and can commit to attending bi-weekly calls to participate is welcome in the working group.

If you choose to participate you may be asked to take meeting notes, help with communication, do research and provide and share research summaries, and contribute to and gather feedback on rollup implementation proposals.

Please reply here, or message me directly if you are interested!


I fully support this idea and will observe it as a passive actor!

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This is amazing, love the approach. It is important that this we figure out a win-win solution for all stakeholders (including but not limited to STAKE hodlers)

I will make sure Giveth has some active participation in this WG.

Hey Luke, I’m super interested in contributing to the this working group :slight_smile:

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I’d love to contribute as well! Please keep me in the loop :slight_smile:

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I am also interested in this commitment to upgrade xDAI into a true Layer2 chain once possible.
The idea of upgrading an already thriving ecosystem into a L2 is a lot more powerful than starting from scratch.
The biggest challenge is to make sure STAKE holders are included in this discussion and future where it becomes more valuable is possible. I would love to discuss ideas around the possible solutions for this challenge.


I would also love to be part of this working group.

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