Key facts
- ZetaChain tokenholders approved a plan to wind down its Cosmos SDK-based layer 1.
- The native ZETA token will migrate to Solana as an SPL token via a 1:1 conversion.
- The proposal passed with 99.4% support and 58% participation.
- Core contributors will submit a second proposal detailing the withdrawal window, shutdown timetable, and token claim process.
- ZetaChain aims to redirect resources from blockchain maintenance to its AI application, Anuma.
- The project suffered a $334,000 exploit in April targeting its cross-chain gateway contract.
ZetaChain's tokenholders have voted to approve a plan that will see the project wind down its existing layer-1 blockchain and migrate its native ZETA token to the Solana network. The governance proposal, which passed with overwhelming support of 99.4% and 58% participation, aims to allow ZetaChain to concentrate its resources on its artificial intelligence application, Anuma, and its Private Memory Layer.
Under the approved plan, ZETA will be converted to an SPL token on Solana at a 1:1 ratio, maintaining its ticker and total supply. A subsequent proposal will outline the specific timeline for asset withdrawals, the snapshot block height, the shutdown schedule, and the process for token claims and exchange conversions. During this transition period, validators will continue to operate, and staking rewards will remain active.
ZetaChain, founded in 2021 as an interoperability-focused project, stated that maintaining its own Cosmos SDK-based layer 1 no longer aligns with its strategic focus on Anuma. The migration to Solana is expected to free up resources previously dedicated to blockchain maintenance, enabling the team to accelerate development of its AI initiatives.
This move by ZetaChain follows similar decisions by other crypto projects. BounceBit recently retired its standalone blockchain and migrated its token to BNB Smart Chain following a security exploit. Harmony has also proposed shutting down its layer-1 and migrating its ONE token to Ethereum as part of a pivot towards an AI video initiative, after facing a similar exploit.
ZetaChain itself experienced a $334,000 exploit in April, which targeted its cross-chain gateway contract and affected funds across multiple blockchains including Ethereum, Arbitrum, Base, and BNB Smart Chain. The project later acknowledged dismissing an earlier bug bounty report on the vulnerability, leading to a review of its security processes.