XDAI

xdai

Rank #374•Smart Contract Platform, Stablecoins, Decentralized Finance (DeFi)

CoinYQ Dossier

The chain changed its name and security token; the gas dollar stayed

xDAI survived the xDai-to-Gnosis rebrand and the switch to Beacon proof of stake. That continuity is useful, but it joins one-dollar gas to a bridge whose reserve asset, relayers and upgrade keys can change.

A stable gas token came before the Gnosis name

xDai Chain launched its defining split early: users paid gas in a dollar-oriented native asset while a bridge held the corresponding Ethereum stablecoin. Native xDAI has no token contract like an ERC-20; wxDAI wraps it for DeFi interfaces.

GIP-16 was created on 2021-11-08. It proposed renaming xDai Chain to Gnosis Chain, retaining xDAI for gas and replacing POSDAO/STAKE with Gnosis Beacon Chain security. The proposal page does not establish a final approval date; the current documentation describes the renamed chain and its later Beacon integration.

The Merge replaced STAKE security, not xDAI

The December 2022 Merge joined the execution chain to Beacon proof of stake. A block validator now deposits 1 GNO, earns GNO consensus rewards and faces inactivity penalties or slashing. xDAI continues to pay execution fees, so gas balance and consensus power remain different assets.

GNO voting can signal GnosisDAO priorities, yet chain upgrades require software authors and validators to coordinate releases. The deposit contract itself is upgradeable by a governance board with a seven-signature threshold. 'Permissionless validators' does not erase every administrative contract.

A dollar exit crosses two multisigs and an issuer boundary

The current bridge changed its Ethereum intake from DAI to USDS while keeping xDAI on Gnosis. Four of seven bridge validators attest a deposit before minting. On exit, xDAI burns and signed messages unlock USDS or produce DAI through the router flow.

Fifteen bridge governors, with eight signatures required, can replace relayers, change limits, fees and thresholds, or upgrade bridge proxies. Convertibility therefore depends on reserve sufficiency, the USDS/DAI system, relayer availability, governor conduct and correct contracts. A 1:1 bridge mechanism is not a bank guarantee or a legal claim on GnosisDAO.

How the project changed

2018
xDai Chain establishes dollar-denominated gas
The bridge-backed native asset becomes the network's defining execution currency.
2021-11-08
GIP-16 proposes the Gnosis merger
The plan keeps xDAI but replaces the brand and security system.
2022-03-08
Gnosis describes the combined chain
The renamed execution layer and upcoming Beacon merger are presented together.
2022-12-08
Gnosis Chain completes the Merge
Beacon proof of stake with GNO replaces the former validator regime.

Evidence and primary sources

Last evidence review: 2026-09-05

What is XDAI?

xDAI is the native currency of Gnosis Chain and pays for EVM execution. It is not an ERC-20; wxDAI is the wrapped ERC-20 representation. The canonical bridge locks the accepted Ethereum-side asset and asks Gnosis consensus to mint xDAI, then burns xDAI for the reverse path.

GNO has a different job. Since the Chain merged with Gnosis Beacon Chain, a validator deposits 1 GNO and can be penalized or slashed. GNO also signals GnosisDAO decisions. Holding xDAI supplies neither validator stake nor a GNO vote.

What problem does XDAI solve?

The original xDai Chain made gas costs dollar-denominated, but that convenience attached the chain's native balance to a cross-chain reserve and a small relay set. The 2021 merger proposal called for renaming the network Gnosis Chain and replacing POSDAO/STAKE security with GNO-backed Beacon validators.

The 2022 Merge completed the consensus change without replacing xDAI. Today the chain can have permissionless block validators while the native asset bridge still relies on seven named relayers and fifteen governors with upgrade authority.

How does XDAI work?

For Ethereum to Gnosis, the current bridge accepts USDS by `relayTokens`, emits an event, and mints xDAI after 4 of 7 bridge validators confirm it. In reverse, xDAI is burned, validators collect signatures, and anyone can execute them on Ethereum to unlock USDS or route a DAI result. Daily and per-transaction limits can delay a valid exit.

Bridge governors are a separate 8-of-15 Safe. They can add or remove bridge validators, change signature thresholds, limits and fees, and upgrade proxy implementations. Those keys control bridge behavior, not ordinary proof-of-stake block finality.

Gnosis Chain validators stake 1 GNO. Consensus rewards and penalties are paid in GNO, while xDAI pays execution fees. Protocol upgrades still require client implementation and validator adoption; a GnosisDAO Snapshot is a social signal, not an automatic onchain upgrade of every client or bridge.

Key facts

xDAI is the native 18-decimal gas asset of Gnosis Chain; wxDAI is its ERC-20 wrapper.
GIP-16, created on 2021-11-08, proposed renaming xDai Chain to Gnosis Chain while retaining xDAI; that date is not a verified approval date.
The December 2022 Merge replaced the prior consensus with Gnosis Beacon proof of stake.
One validator requires 1 GNO; xDAI is not the staking asset.
The current Ethereum intake defaults to USDS while Gnosis still mints xDAI.
xDAI bridge messages require 4 of 7 bridge validators.
Bridge governance requires 8 of 15 governors and can change validators, thresholds, limits, fees and implementations.
Burned xDAI can be relayed for USDS or DAI on Ethereum, subject to bridge operation.

Official links

Official website Whitepaper Block explorer X / Twitter Reddit GitHub

Related coins

Frequently asked questions

Is xDAI the same token as DAI or USDS?

No. xDAI is Gnosis Chain's native balance. The bridge uses Ethereum USDS/DAI flows to mint or burn it; wxDAI is its ERC-20 wrapper on Gnosis.

Can xDAI be staked to validate the chain?

No. A Gnosis Chain validator deposits 1 GNO. xDAI pays gas and execution fees.

Can xDAI be redeemed 1:1?

The bridge implements a 1:1 mint/burn route to USDS or DAI, but completion depends on 4-of-7 relayer signatures, limits, contracts and the external stablecoin system.

Who can change the xDAI bridge?

An 8-of-15 bridge governor Safe can upgrade contracts and change validator membership, thresholds, limits and fees.

Does xDAI give a GnosisDAO vote or legal ownership?

No. GNO is used for DAO signaling. The reviewed material does not grant xDAI holders equity, treasury ownership or a legal redemption claim against GnosisDAO.

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