Gnosis Chain Explained: The Decentralized Network for Governance and DAOs
Key Takeaways
• Gnosis Chain offers predictable operating costs using xDAI for gas fees.
• It features mature multisig and governance tools like Safe and Snapshot.
• EVM compatibility allows easy migration from Ethereum and L2s.
• The network's security model emphasizes practical decentralization and home-staking.
• Gnosis Chain supports account abstraction for enhanced DAO operations.
Gnosis Chain has quietly become one of the most practical blockchains for decentralized governance. Originally known as xDai, it merged with Gnosis to create an EVM-compatible network optimized for DAOs, collective treasury management, and everyday on-chain operations. With predictable costs and mature tooling, Gnosis Chain is a go-to environment for communities that need reliable infrastructure—without the complexity or fee volatility of Ethereum L1.
This article covers how Gnosis Chain works, why DAOs pick it for governance, and what builders and treasurers should know in 2025.
What Is Gnosis Chain?
Gnosis Chain is an Ethereum-compatible network designed for accessible, low-cost transactions and robust DAO tooling. It retains the xDai design decision where gas fees are paid in a stable-denominated token (xDAI), which helps treasuries budget predictably for routine actions like multisig approvals, proposal execution, and reward disbursement. The network uses proof-of-stake via the Gnosis Beacon Chain, with GNO as the staking asset, and tracks Ethereum’s client and EVM updates to maintain compatibility. For specifications, tooling, bridges, and validator details, see the official Gnosis Chain docs: Gnosis Chain documentation.
For real-time network data (blocks, transactions, contracts), use the Blockscout explorer for Gnosis Chain.
Why DAOs Choose Gnosis Chain
- Predictable operating costs: Using xDAI for gas stabilizes routine expenses such as payroll, grant disbursements, and proposal execution. Learn more in the Gnosis Chain docs.
- Mature multisig and governance tooling:
- Safe multisig remains a cornerstone for DAO treasuries, with familiar UX and module extensibility. Explore Safe’s features at Safe and the developer resources at Safe docs.
- Snapshot enables off-chain voting with on-chain execution paths through adapters and relayers. See Snapshot and Snapshot docs.
- Zodiac offers modular governance components for composable DAOs. Browse modules and patterns at Zodiac.
- EVM compatibility: Contracts and tooling port over with minimal changes, which makes migration from Ethereum or L2s straightforward.
- Bridges to Ethereum: Native and third-party bridges facilitate moving assets in and out efficiently. Overview available in Gnosis Chain bridges.
Architecture and Security Model
Gnosis Chain is a proof-of-stake network with a broad validator set and client diversity. It emphasizes practical decentralization and home-staking friendliness while maintaining EVM parity with Ethereum upgrades.
As a sidechain, Gnosis Chain’s security model is distinct from Ethereum L1 and rollups. Bridging assets introduces counterparty and bridge-specific risks, so treasuries should consider diversification (e.g., keep runway on multiple networks), operate multisig signers with hardware devices, and use audited bridge paths. Read the network’s overview and validator documentation at Gnosis Chain docs.
2025 Context: Governance, AA, and Upgrades
The broader Ethereum ecosystem continues to evolve rapidly. With Ethereum’s Dencun upgrade live, blob transactions have reduced L2 fees and expanded design space for applications on rollups, while sidechains remain relevant for low-latency, predictable-cost operations that DAOs rely on. For background on Dencun’s impact at the L1 level, see the Ethereum Foundation’s Dencun mainnet post.
Meanwhile, account abstraction (AA) matures across the stack, enabling features like programmable approvals, session keys, batched actions, and role-based policies. Safe has been an early leader in production-grade AA patterns—see the overview at Account Abstraction by Safe. These patterns map naturally onto DAO operations on Gnosis Chain: proposal execution can be parameterized, treasury workflows can be automated, and spending caps or policies can be enforced at the account level.
Gnosis also continues incubating payment and governance primitives that link crypto treasuries with day-to-day spending. For example, Gnosis Pay aims at connecting on-chain funds to real-world payments rails, relevant for DAO payroll or grantee expenses. Details at Gnosis Pay.
Building and Operating a DAO on Gnosis Chain
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Add the network
- Gnosis Chain is network ID 100. You can add it in a single click via Chainlist (chain 100).
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Fund with xDAI and bridge assets
- Move assets from Ethereum using supported bridges (native and third-party) referenced in Gnosis Chain bridges.
- Keep a small buffer of xDAI for gas per signer and per contract.
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Set up treasury controls
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Configure governance
- Choose an off-chain voting setup on Snapshot with on-chain execution triggers if needed. Start at Snapshot.
- For high-stakes actions, combine Snapshot signaling with multisig execution and clear runbooks.
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Deploy contracts and tools
- EVM compatibility allows direct porting from Ethereum and L2s.
- Use the Blockscout explorer to verify deployments and monitor activity.
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Test before mainnet
- Use the Chiado testnet (chain ID 10200) to dry-run governance and treasury workflows. Add it via Chainlist (Chiado, chain 10200).
Best Practices for DAO Treasury Security
- Use hardware-backed keys for multisig signers. This reduces the risk of hot wallet compromise when executing proposals or payments.
- Separate roles: keep policy changes and payments under distinct multisig policies, with clear signers and thresholds.
- Bridge conservatively: prefer canonical or audited bridges; avoid holding excessive treasury exposure in bridge contracts.
- Log and automate: adopt runbooks for proposal lifecycle, payment schedules, and signer rotations. AA modules can help enforce policy.
Where OneKey Fits
For DAOs operating on Gnosis Chain, secure multisig signers are non-negotiable. OneKey hardware wallets help signers keep private keys offline while still interacting with EVM networks like Gnosis Chain through standard interfaces. Teams can use OneKey with their preferred desktop or browser wallet stack to approve Safe transactions, execute Snapshot outcomes, and manage treasury actions with reduced attack surface. If your DAO is consolidating operations on Gnosis Chain, aligning signer practices with hardware-backed approvals is a practical upgrade in security.
Conclusion
Gnosis Chain is purpose-built for DAO governance: EVM compatibility, stable gas, mature multisig tooling, and straightforward bridges make it a pragmatic home for community treasuries and collective decision-making. With 2025’s focus on account abstraction and more capable governance modules, teams have a wide design space to automate policies and reduce operational risk. Whether you are migrating from Ethereum, expanding to a secondary execution environment, or launching a new DAO, Gnosis Chain offers a balance of cost, UX, and tooling that’s hard to beat.
Explore the network, tooling, and latest guidance:
