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ZetaChain Voters Approve Move From Layer 1 To Solana

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ZetaChain Voters Approve Move From Layer 1 To Solana
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A significant shift in the project’s course has occurred with the approval of a plan by ZetaChain token holders to shut down the network’s Layer 1 blockchain and transfer ZETA to Solana. In a 72-hour vote that concluded on September 20 with 58% voter turnout, Proposal 68 garnered 99.4% approval, much above the necessary 40% quorum. ZETA will maintain its ticker and total supply while becoming a native Solana SPL token at a one-to-one conversion rate under the authorized proposal.

The vote does not mean that ZetaChain will shut down immediately. A second governance proposal will set the exact shutdown block, balance snapshot, token-claim process and other technical details of the migration.

Until that vote is completed, ZetaChain will continue operating normally. Validators will keep producing and validating blocks, while staking and delegation will remain active. The team has said the second proposal will be submitted after exchanges that support ZETA confirm how they will handle the migration.

The proposed conversion applies to ZETA native to ZetaChain. ZETA coins that have already been issued on the BNB Chain and Ethereum will not be included. The project will not produce new tokens as part of the migration, and current vesting periods will not be altered. It is anticipated that the entire supply would continue to be limited at 2.1 billion ZETA.

ZETA will utilize nine decimals on Solana as opposed to ZetaChain’s eighteen. Balances will be converted accordingly, with amounts rounded down. Once the migration is complete, the Solana version will become the project’s canonical ZETA token.

ZetaChain said a traditional wrapped token or bridge would not be suitable because it would continue to depend on the original blockchain, which is scheduled to be shut down.

The decision is closely linked to the project’s growing focus on Anuma, its private AI application launched in February. ZetaChain said more than 300,000 people have joined Anuma, which has processed around one million requests across 35 AI models. The application uses encrypted memory technology designed to let users carry information between different AI models, applications and agents. ZETA also has a role in Anuma through a credit system. Users can lock ZETA to receive credits that can be spent on AI services.

According to the proposal, maintaining a separate Layer 1 no longer supports the project’s private-AI strategy. ZetaChain also highlighted the maintenance demands of its Cosmos SDK-based blockchain, including the need to coordinate security updates and patches across validators.

The latest decision therefore represents a shift from running an independent blockchain towards building the project’s AI-focused ecosystem on Solana. However, several important steps are still pending, including the second governance vote, exchange support and the final migration process.

ZetaChain plans to publish the balance snapshot, checksum and other migration information so users can independently verify their balances. A definitive closure date has not yet been published by the project.

After receiving $27 million from investors in 2023, including Blockchain.com and Jane Street Capital, ZetaChain launched its mainnet in January 2024. The initial goal of the project was to make it possible for apps to interact with assets from other blockchain networks, such as Ethereum and Bitcoin. The approved migration marks a significant change in that original strategy.

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Written by
Kapil Rajyaguru -

Kapil Rajyaguru is a news editor at 3.0 TV with over 15 years of professional writing experience and more than four years dedicated to the cryptoverse.

An engineer by education and a writer by passion, Kapil brings a rare mix of technical insight and storytelling finesse. A firm believer that cryptocurrencies, blockchain and AI are the building blocks of the future, he crafts in-depth news and analysis to educate, empower and prepare the masses for the next frontier of Web3.

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