Status Network Unveils Gasless Ethereum L2 for $200 Million Web3 Growth

- Introducing fee-free transactions for scalable Web3 funding. - Building a sustainable ecosystem with community-led governance. Status Network is developing a gasless Layer 2 (L2) on Ethereum to revolutionize public funding in Web3, focusing on sustainability and user-centric governance. On July 10, 2025, Cointelegraph reported that the solution introduces several key features to create a dynamic ecosystem, including fee-free transactions, yield-based funding, a revenue-sharing model, and a non-transferable governance token named Karma. The Layer 2 eliminates transaction fees with a rate-limiting nullifier system that assigns users renewable transaction quotas. This system prevents spam while maintaining a seamless, cost-free experience for regular activity. The network will fund its operations using yield generated from user-deposited assets. According to the project’s pseudonymous lead, "cyp," a Total Value Locked (TVL) of $100-$200 million will be sufficient to sustain the network's costs, and any excess revenue will fuel community funding initiatives. To further decentralize value, the ecosystem features a revenue-sharing model where 30% of the generated gas revenue funds network operations, while the remaining 70% is redistributed to users through public funding and liquidity incentives. Additionally, native applications, such as decentralized exchanges (DEXs) or launchpads, will contribute 30% of their transaction fees to the funding pool, amplifying the ecosystem's growth. Status Network will also empower community-based funding through user governance, allowing users to allocate ETH and stablecoins from the funding pool to projects and teams through voting. Governance revolves around the platform's non-transferable Karma token, which users earn by staking the SNT utility token, providing liquidity, or engaging with network applications. These Karma tokens grant voting power over funding proposals and other critical ecosystem decisions. The project’s public testnet is already live, with key milestones approaching. The team plans to release Testnet v2 in October, featuring improved spam protection and native yield-routing functionalities. This release will coincide with a TVL pre-deposit campaign to stimulate early participation. With a mainnet launch targeted for the first quarter of 2026, Status Network is collaborating with Linea to integrate zkEVM rollup technology for scalable and secure transaction processing. According to CoinMarketCap, as of July 10 at 16:15 UTC, Ethereum (ETH) was trading at $2,781.03, reflecting a 4.74% increase in 24-hour trading volume. Meanwhile, USD Coin (USDC) maintained its $1.00 peg with a minimal 0.017% volume shift.