# Extension chains

**URL:** https://forum.hypercore.one/t/extension-chains/52
**Category:** Development
**Created:** [May 9, 2023, 7:31pm UTC](https://forum.hypercore.one/t/extension-chains/52 "2023-05-09T19:31:50Z")
**Posts on this page:** 1
**Showing post:** 1

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### Author: ![aliencoder](https://forum.hypercore.one/user_avatar/forum.hypercore.one/aliencoder/32/49_2.png) [@aliencoder](https://forum.hypercore.one/u/aliencoder)
#### Post date: [May 9, 2023, 7:31pm UTC](https://forum.hypercore.one/t/extension-chains/52/1 "2023-05-09T19:31:50Z")

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In my opinion a Layer-2 and/or sidechain implementation will bring EVM/WASM compatibility for NoM and will greatly expand the ecosystem. The NoM Multichain Technology can become a de-facto hub for interoperability within the ecosystem.

This way, the base layer remains minimal & efficient as Mr Kaine emphasizes and all the heavy work/bloat is kept in a separate execution domain.

Pillars produce inflation as `ZNN` and they will also run the `orchestrator` nodes. It makes sense for them to also act as validators for a L2/sidechain where fees are paid in `ZNN`. The L2/sidechain should not produce additional/separate inflation. Pillars can bridge part of their `ZNN` inflation into the L2/sidechain ecosystem and they will be incentivized to bridge more if usage is high.

`ZNN` is not a gas token because the L2/sidechain will use a wrapped representation of it. It can be called `eZNN` or `xZNN` (execution ZNN).

We can use the decentralized bridge @sumamu built and tweak it to support this type of wrapping. It would be a little bit different from wrapping `ZNN` to `wZNN` and unwrapping it later because `xZNN` will actually be consumed/burnt in the extension chain, so it won’t be a 1:1 backing.

`xZNN` can be associated with the gas concept for the extension chain.

Since there won’t be any inflation, the extension chain will only have a fee distribution mechanism:

- 33% distributed to builders (contract deployers)
- 33% distributed to extension chain validators
- 34% burned (similar to ETH)

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