ZETA Token Migration to Solana Gets Green Light as ZetaChain Abandons Layer-1 Network
In a decisive vote, ZetaChain's community has authorized the shutdown of its Cosmos-built layer 1 blockchain and the relocation of ZETA tokens to Solana, reflecting a broader industry trend of projects abandoning independent chains.
A proposal to shut down ZetaChain's layer-1 blockchain and relocate its native ZETA token to Solana has received approval from the project's token holders.
The network's governance proposal 68 secured passage on Sunday with overwhelming backing of 99.4% and achieved 58% voter participation, surpassing the platform's required 40% quorum threshold. The approved plan calls for ZETA to be converted into an SPL token on Solana using a 1:1 exchange rate, maintaining the same ticker symbol and overall token supply.
The proposal makes clear that the vote does not automatically initiate the shutdown of ZetaChain or begin the migration process. A subsequent proposal will be submitted by core contributors that will outline specific details including the timeframe for withdrawing assets connected to other blockchains, the snapshot block height, the shutdown schedule, the token claim procedure, and the conversion period for exchanges. Network validators will remain operational and staking rewards will persist throughout the transition period.
The decision to discontinue its Cosmos SDK-based layer 1 blockchain stems from ZetaChain's determination that maintaining the network no longer aligns with its primary focus on Anuma, its privacy-oriented artificial intelligence application. The project stated that transitioning to Solana would enable it to reallocate resources away from blockchain infrastructure maintenance toward developing Anuma and its Private Memory Layer, a feature that enables users to transport encrypted context between different AI models.
Established in 2021, ZetaChain originally launched as an interoperability-centered project with the goal of bridging assets and data between various blockchains. The project secured $27 million in funding during 2023 from notable investors including Blockchain.com, Jane Street Capital, Human Capital and Sky9 Capital to build out its layer-1 network infrastructure.
Crypto projects wind down standalone chains
Several other blockchain initiatives, including BounceBit and Harmony, have similarly revealed intentions to discontinue their independent blockchain networks.
BounceBit decided in August to shut down its standalone blockchain following the exploitation of an authorization vulnerability that resulted in the theft of approximately $3 million worth of BB tokens. Rather than relaunching its layer 1 network, the project chose to transfer its token to BNB Smart Chain using a 1:1 conversion ratio.
Harmony put forward a proposal on Sept. 6 to close down its layer-1 blockchain and transition its native ONE token to Ethereum as an ERC-20 token, forming part of a strategic shift toward an AI video initiative. This proposal emerged just weeks following an exploit that generated unauthorized ONE tokens, which prompted Harmony to propose rolling back more than 109,000 transactions.
In April, ZetaChain also experienced a $334,000 exploit that targeted its cross-chain gateway contract, resulting in the drainage of funds from ZetaChain-controlled wallets spanning Ethereum, Arbitrum, Base and BNB Smart Chain.
The project subsequently admitted that it had previously dismissed a bug bounty report highlighting the vulnerability, treating it as intended behavior, which led to a comprehensive review of its security procedures.