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ZetaChain Holders Approve Solana Migration and Layer 1 Shutdown

ZetaChain holders approved a Solana migration and Layer 1 shutdown, with 99.4% support and 58% voter participation in Proposal 68.
ZetaChain governance proposal approving migration of ZETA and Layer 1 operations to Solana

ZetaChain token holders have approved a plan to shut down the project's independent Layer 1 blockchain and migrate its operations to Solana, according to Proposal 68. The proposal received 99.4% support, with voter participation reaching 58%, above the required 40% quorum.

Opposition and abstentions each accounted for 0.3% of the vote.

Under the approved framework, ZETA will transition into a native Solana SPL token through a one-for-one conversion. The token will keep the ZETA ticker, total supply and existing vesting schedules. Tokens held on Ethereum and BNB Chain are excluded from the conversion framework.

The timing and mechanics of the shutdown have not yet been finalized, however, leaving several operational details subject to another governance proposal.

ZetaChain Moves ZETA to Solana

The migration is closely linked to ZetaChain's Anuma artificial intelligence application, which developers launched in February.

According to ZetaChain, Anuma has attracted more than 300,000 users and processed one million requests using 35 artificial intelligence models. Its encrypted memory system is designed to operate across different models, applications and agents while giving users control over their information.

The platform also incorporates ZETA into its AI services. Holders can lock ZETA tokens and receive credits that can be used for artificial intelligence services within the application.

Developers said Solana provides a more suitable foundation for Anuma while allowing the project to avoid the operational requirements associated with maintaining a separate Layer 1 blockchain.

Maintaining a Separate Layer 1 Added Operational Burden

The proposal cited the demands of operating an independent Cosmos SDK-based network as a factor behind the decision.

Each upstream security advisory requires coordination with validators and additional work to keep the network secure and updated. Developers also argued that the increasing use of artificial intelligence tools could expose additional vulnerabilities in blockchain software.

Cosmos Labs previously disclosed attacks affecting six Cosmos EVM chains, although ZetaChain was not among the networks compromised in those incidents.

The governance proposal therefore linked the decision to both the resources required to maintain ZetaChain's own infrastructure and the project's changing priorities around artificial intelligence.

ZetaChain Shutdown Date Still Undecided

Although holders have approved the migration, ZetaChain has not announced a final date for shutting down its Layer 1 network.

The project still needs exchanges to confirm how they will handle the ZETA conversion. A subsequent proposal is expected to establish several key parameters, including the balance snapshot height, the final shutdown block, the token-claim process and instructions for withdrawing assets connected to other networks.

Those details will determine how existing holders and users transition from the current blockchain to the Solana-based structure.

ZETA staking also remains active for now. However, developers have not yet finalized how staking and associated rewards will function after the move to Solana.

Migration Marks Shift From ZetaChain's Original Strategy

The move represents a significant change from ZetaChain's original focus on blockchain interoperability.

ZetaChain raised $27 million in August 2023 from investors including Blockchain.com and Jane Street Capital. Its mainnet subsequently launched in January 2024, with support for applications using assets originating from networks including Bitcoin and Ethereum.

The project is now shifting its infrastructure strategy toward Solana as developers prioritize Anuma and its artificial intelligence-related applications.

The decision does not immediately complete the transition. Exchange coordination, the future staking model, the snapshot mechanism and the final shutdown procedures still need to be established.

ZETA declined approximately 2.5% over 24 hours as holders assessed the migration and the unresolved details surrounding staking and the network shutdown.


Writer: Marcus Renfield
  
Crypto Market Analyst & Onchain Writer

Marcus Renfield covers cryptocurrency markets with a focus on onchain data, Bitcoin price action, and emerging market narratives. His writing examines how capital flows, network activity, and broader market structure influence short- and medium-term trends.

He aims to provide clear, data-informed analysis for readers seeking a deeper understanding of crypto market dynamics.


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