ZetaChain Holders Approve L1 Shutdown Plan, Solana Migration
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
ZetaChain tokenholders approved a plan to wind down the project's layer-1 blockchain and migrate the native ZETA token to Solana as an SPL token on a 1:1 basis. The governance proposal passed with 99.4% support and 58% participation. A second proposal will outline the shutdown details and token claim process, with validators continuing operations during the transition.
Why it matters
According to ZetaChain, operating its own Cosmos SDK-based layer 1 no longer aligns with its focus on Anuma, a private AI application. Moving to Solana will allow the project to redirect resources toward developing Anuma and its Private Memory Layer, rather than maintaining a standalone blockchain.
Key context
ZetaChain was launched in 2021 to enable interoperability across blockchains and raised $27 million in 2023 from investors including Blockchain.com and Jane Street Capital. The project suffered a $334,000 exploit in April targeting its cross-chain gateway. Similar chain shutdowns have been seen recently, such as BounceBit migrating tokens to BNB Smart Chain after a hack, and Harmony proposing to move their token to Ethereum following a security issue.
Key numbers and entities
Governance proposal 68 passed with 99.4% support and 58% participation, exceeding a 40% quorum. ZetaChain raised $27 million in 2023. Notable investors include Blockchain.com, Jane Street Capital, Human Capital, and Sky9 Capital. The April exploit drained funds across Ethereum, Arbitrum, Base, and BNB Smart Chain. Other projects mentioned include BounceBit and Harmony, with tokens BB and ONE respectively.
What remains unclear
The source does not specify the timeline for the shutdown, exact details of the withdrawal window, nor the full mechanics of the token claim and exchange conversion process, which will be addressed in a forthcoming proposal. It is also unclear how the migration will impact existing ZETA token holders operationally during the transition.