ZetaChain proposes halting Layer 1 and migrating token to Solana
An onchain governance vote proposes to end block production on 9 December and reissue ZETA as an SPL token on Solana.
Key takeaways
- 1ZetaChain proposed halting block production on its Layer 1 network on 9 December.
- 2Native ZETA tokens would migrate 1:1 to Solana as SPL tokens under the governance proposal.
- 3The project plans to burn roughly 55 million ZETA validator reward tokens in batches during 2027.
ZetaChain launched an onchain governance vote on 5 November proposing to permanently halt block production on its Layer 1 network on 9 December and migrate its native ZETA token 1:1 to Solana. Wu Blockchain reported that the proposed move would transfer the token to Solana as a Solana Program Library token.
The governance proposal includes plans to launch ZetaLabs at the same time, a privacy-focused artificial intelligence application designed for financial markets. ZETA will serve as the payment token for AI services, product governance, and premium features within the new application. The project also intends to burn approximately 55 million ZETA tokens, which were originally allocated for validator rewards, in batches throughout 2027. Voting on the proposal is scheduled to conclude on 7 November.
The transition would move ZETA's underlying infrastructure onto Solana, currently one of the largest public blockchain networks. Data from YourKhabri shows Solana had a market capitalization of $56.9 billion and traded at $96.41 on 5 November, ranking it seventh among all digital assets by market value.
Moving from a standalone Layer 1 blockchain to an application on Solana marks a structural change for the project, eliminating the need to maintain an independent validator network. Token holders and validators will track the outcome of the governance ballot on 7 November to confirm whether the migration and the scheduled 9 December network halt will proceed as planned.
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