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ZetaChain Proposes Shutting Down Its Layer 1 and Moving ZETA to Solana

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ZetaChain has opened a second governance vote that could permanently end block production on its Layer 1 network and move its native ZETA token to Solana. The proposal, submitted on November 4, outlines a 1:1 migration that would replace native ZetaChain tokens with a Solana-based SPL token while preserving the ZETA ticker.

Voting is scheduled to close on November 7, 2026. If approved, the migration process will begin with a blockchain snapshot around December 9, at which point ZetaChain’s Layer 1 would halt permanently. The proposal does not represent an entirely new direction: token holders approved the broader plan in September through Proposal 68, which received approximately 99.4% support. The current vote establishes the technical process, timetable and protections for holders.

Under the proposed arrangement, the total eligible ZETA balance recorded at the snapshot will be minted on Solana at a 1:1 ratio. The project says no additional supply will be created through the migration, and the Solana token’s mint authority will be permanently revoked once the distribution is funded.

ZETA Migration and the End of ZetaChain’s Layer 1

The migration is designed to cover more than tokens held in ordinary wallets. Eligible balances include staked tokens, unbonding positions and unclaimed validator or delegator rewards. Holders will not need to unstake before the snapshot, while participating exchanges are expected to handle conversions for customers through their own announced procedures.

For self-custody holders, ZetaChain plans to open a migration portal through ZetaHub on December 9. Users will connect the wallet holding their ZETA, sign a message and provide a Solana wallet address. The project says the process will not require a transaction fee, SOL for gas or disclosure of a seed phrase. Balances below 10 ZETA will not qualify for individual claims.

The proposal also addresses assets bridged into ZetaChain. Eligible ZRC-20 assets remaining at the snapshot will be claimable back on their original networks through a separate process. Holders of wrapped or pooled ZETA are advised to unwrap their tokens and exit relevant pools before the snapshot because balances held inside smart contracts cannot necessarily be claimed through an individual wallet signature.

A security review by Hacken is planned for the migration program and claim service. ZetaChain says the audit report, Solana token address and migration program details will be published before the portal opens. These safeguards will be important because a migration involving a permanent network shutdown creates significant operational risks for holders.

ZetaChain Introduces ZetaLabs and Plans 55 Million Token Burn

The proposed transition also changes the project’s product direction. ZetaChain plans to launch ZetaLabs on December 9, positioning it as a privacy-focused AI application for financial markets. The service is intended to combine multiple AI models with live market information covering areas such as cryptocurrencies, derivatives, prediction markets, stocks and commodities.

ZETA will become part of the application’s economic model. Users will be able to pay for AI services with the token, receive discounts and unlock additional features. From the first quarter of 2027, the roadmap also includes locking ZETA for Premium access and using token-based governance to influence supported markets, data sources and AI models.

Another major component is the planned removal of approximately 55 million ZETA previously allocated for validator emissions but not yet distributed. Instead of releasing these tokens as rewards throughout 2027, ZetaChain proposes burning them in 12 monthly installments of approximately 4.6 million tokens. The project says this will reduce total supply without introducing a new inflation mechanism on Solana.

The proposed supply model places approximately 1.5 billion ZETA on Solana and leaves 600 million ZETA as an ERC-20 token on Ethereum. Once the Solana mint authority is revoked, additional issuance on that network will no longer be possible. The project also says existing vesting schedules will remain unchanged and that newly unlocked tokens from its allocation will not be sold during 2027.

For ZETA holders, the decision represents a fundamental change rather than a routine network upgrade. ZetaChain is moving away from operating its own Layer 1 infrastructure and toward building a token-powered AI application within Solana’s ecosystem. The November 7 vote will determine whether the proposed migration proceeds on these terms, with December 9 marking the planned transition date.

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