ZetaChain Proposes Ending Layer 1 Block Production and Migrating ZETA to Solana
ZetaChain has launched an onchain governance vote on a proposal that would permanently stop block production on its Layer 1 network on December 9 and migrate its native ZETA token to Solana at a 1:1 ratio. The proposal also outlines plans for a privacy-focused artificial intelligence application called ZetaLabs and the gradual destruction of approximately 55 million ZETA tokens throughout 2027.
According to Wu Blockchain, the proposal would move ZETA from its current native network format to an SPL token on Solana. Under the proposed arrangement, holders would receive ZETA on Solana at a one-to-one conversion ratio, meaning each existing ZETA would correspond to one ZETA token on the destination network.
The plan represents a significant proposed change to ZetaChain's network operations. Rather than continuing block production on its Layer 1 blockchain, the network would permanently halt that activity on December 9 if the governance proposal receives approval.
ZetaLabs to Introduce AI Services and Privacy Features
Alongside the proposed network transition, ZetaChain plans to launch ZetaLabs, described as a privacy-focused AI application tailored for financial markets. The project intends to integrate ZETA into the application's economic and governance structure.
According to the proposal, ZETA would serve several functions within ZetaLabs. Users would be able to spend the token to pay for AI services, unlock application features and participate in product governance. These planned utilities would give ZETA a role within the proposed application beyond its existing use as the network's native token.
However, the announcement describes these developments as part of a proposal and planned launch. Their implementation remains tied to the outcome of the governance process and the project's subsequent execution.
ZetaChain Plans to Burn Approximately 55 Million ZETA
Another component of the proposal involves approximately 55 million ZETA originally allocated for validator rewards. ZetaChain plans to burn these tokens in batches throughout 2027, rather than removing the entire amount in a single event.
The planned token burns would reduce the amount of ZETA associated with the original validator-reward allocation. The proposal does not specify additional details about the individual burn schedules or the resulting total token supply.
The governance vote is scheduled to conclude on November 7. Its outcome will determine whether the proposed changes, including the December 9 halt to Layer 1 block production, the 1:1 migration of ZETA to Solana, the ZetaLabs launch and the planned 2027 token burns, can proceed.
Writer: Victoria HaleTechnology & Blockchain WriterVictoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.She prioritises clarity and accuracy when explaining technical developments to a general audience.
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