ZetaChain Proposes L1 Shutdown Amid Solana Migration, Plans to Burn 55 Million ZETA

L1 Network Shutdown and Snapshot on December 9

ZetaChain, which has been operating as a cross-chain platform, has announced a specific governance proposal to shut down its own Layer 1 (L1) blockchain and fully migrate its native token "ZETA" to the Solana network.

This proposal was submitted following an overwhelming 99.4% approval in a vote indicating the direction of the migration held in September, aiming to clarify the specific implementation schedule and procedures.

According to the proposal, ZetaChain will permanently halt all transactions and block generation on the existing L1 blockchain when it reaches block height 20,755,000 (expected around December 9, 2026). A snapshot of token balances on the network will be executed in conjunction with this shutdown.

The records to be captured include:

Liquid holdings
Staked tokens
Balances during unbonding (unlocking) periods
Unclaimed staking rewards

After the network shutdown, the main chain of ZETA will completely migrate to Solana. The ZetaChain Foundation will adopt Solana's SPL token standard and issue (mint) tokens equal to the existing supply, with an exchange ratio set at 1:1. The new issuance authority will be permanently disabled after minting, ensuring no additional inflation occurs.

Note that the ERC-20 standard ZETA issued on Ethereum will not be affected.

Claim Process and Important Notes for ZETA Holders

After the L1 shutdown on December 9, holders will be able to receive Solana-based ZETA through the migration portal ZetaHub.

The claim procedure and main points to note are as follows:

Wallet Connection and Signature:
By connecting the old ZETA holding wallet and specifying the receiving Solana address for signature, tokens can be received without gas fees.
Minimum Holding Requirement:
To individually proceed with the claim, a holding of at least 10 ZETA is required at the time of the snapshot.
Dissolution of DeFi Positions:
Assets deposited in smart contracts such as liquidity pools and wrapped tokens will not be subject to automatic migration, so positions must be dissolved in advance.
Exchange Handling:
Tokens held on CEX (centralized exchanges) will be converted according to the unique schedules and rules set by each exchange.

The portal is expected to open once the audit of the related program by the security firm Hacken is completed.

Burning 55 Million ZETA and Complete Halt of Future Inflation

As part of this infrastructure migration, approximately 55 million ZETA allocated for validators from the undistributed reward pool will be reduced without being supplied to the market. This token is planned to be burned in a phased manner, 12 times a month throughout 2027.

Additionally, the initially planned annual issuance (inflation) of 2.5% starting from the fourth year of L1 operation will also be revoked, thereby lowering the maximum supply of ZETA and maintaining its scarcity.

Launch of New Platform ZetaLabs and AI Integration

By reducing the maintenance and operational costs of its own L1, and leveraging the existing Solana infrastructure, the development team will focus resources on the private AI application domain.

As a core element, a new platform called ZetaLabs will be launched on December 9. This platform is based on Anuma Chat and integrates multiple AI models, financial market data, and encrypted user memory.

Main Initial Features
Chat: Real-time market research AI tool
Radar: Tracking trends in the cryptocurrency market
Bloom: Encrypted transaction history management function

Users can make payments with ZETA or USDC, and by locking ZETA, they gain access to premium features. To maintain access to historical data, the maintenance of archive nodes is guaranteed until the end of October 2027.

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