Key Points
- ZetaChain tokenholders approved a plan to wind down the project’s Cosmos SDK-based layer 1 and migrate ZETA to Solana.
- Governance Proposal 68 passed with 99.4% support and 58% participation, above the network’s 40% quorum requirement.
- ZETA would become an SPL token through a 1:1 conversion, while a second proposal will determine the shutdown timetable, asset withdrawal window and token-claim process.
ZetaChain Approves Layer-1 Wind-Down
ZetaChain tokenholders have approved a plan to retire the project’s standalone layer-1 blockchain and move the native ZETA token to Solana.
Governance Proposal 68 passed Sunday with 99.4% support and 58% voter participation. The participation rate exceeded ZetaChain’s 40% quorum requirement.
Under the approved framework, ZETA will migrate to Solana as an SPL token through a 1:1 conversion. The token will retain the ZETA ticker and its existing total supply.
The vote establishes the direction of the transition but does not immediately shut down the ZetaChain network.
Second Proposal Will Set Migration Details
ZetaChain said core contributors will submit a follow-up governance proposal covering the operational details of the transition.
The second proposal is expected to address the withdrawal window for assets connected to other blockchains, the snapshot block height, the layer-1 shutdown schedule, the process for claiming migrated tokens and the conversion period for exchanges.
Until the transition progresses further, ZetaChain validators will continue operating the network and staking rewards will remain active.
That means the approved governance vote represents the beginning of the wind-down process rather than an immediate cessation of the blockchain.
ZetaChain Shifts Focus Toward AI
The decision is tied to a change in ZetaChain’s strategic focus.
The project said maintaining its Cosmos SDK-based layer 1 no longer supports its primary direction around Anuma, its private-focused artificial intelligence application.
By moving ZETA to Solana, ZetaChain said it can redirect resources previously dedicated to maintaining its own blockchain toward Anuma and its Private Memory Layer.
The Private Memory Layer is designed to allow users to carry encrypted context across different AI models.
The shift therefore moves ZetaChain away from maintaining an independent blockchain infrastructure and toward building applications and infrastructure around its AI-focused products.
From Interoperability Network to AI Infrastructure
ZetaChain was founded in 2021 with an emphasis on interoperability, aiming to connect assets and data across multiple blockchains.
The project later raised $27 million in 2023 from investors including Blockchain.com, Jane Street Capital, Human Capital and Sky9 Capital to support development of its layer-1 network.
The planned migration represents a significant change from that original infrastructure strategy.
Rather than maintaining a dedicated chain, ZetaChain would use Solana as the network for its native token while allocating more resources toward its application-focused roadmap.
Other Projects Are Retiring Standalone Chains
ZetaChain’s decision follows similar moves by other blockchain projects.
BounceBit announced plans in August to retire its standalone blockchain after an authorization vulnerability was exploited, resulting in the theft of approximately $3 million in BB tokens. The project subsequently migrated its token to BNB Smart Chain at a 1:1 ratio.
Harmony also proposed shutting down its layer 1 on Sept. 6 and migrating its ONE token to Ethereum as an ERC-20. The proposal was connected to a broader pivot toward an AI video initiative.
These developments illustrate a growing willingness among some blockchain projects to replace dedicated networks with established ecosystems when their strategic priorities change.
ZetaChain Previously Experienced an Exploit
ZetaChain’s own transition also follows a security incident earlier this year.
In April, an exploit targeting the project’s cross-chain gateway contract drained approximately $334,000 from ZetaChain-controlled wallets across Ethereum, Arbitrum, Base and BNB Smart Chain.
The project later acknowledged that an earlier bug bounty report concerning the vulnerability had been dismissed as intended behavior and said it would review its security processes.
The incident was separate from the governance decision to migrate ZETA to Solana, but it forms part of the project’s recent operational history as it restructures its blockchain strategy.
Outlook
ZetaChain’s governance vote sets the direction for a transition from a standalone layer 1 toward a Solana-based token infrastructure and an AI-focused product strategy. The migration will not occur immediately, with a second proposal still required to establish the withdrawal, snapshot, shutdown and token-claim procedures. Until those details are finalized, validators and staking activity will continue on ZetaChain. The longer-term outcome will depend on how effectively the project redirects resources toward Anuma and its Private Memory Layer while maintaining continuity for existing ZETA holders and users.
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