ZetaChain has launched an onchain governance vote on a proposal that would permanently halt block production on its Layer 1 network on December 9 and migrate the native ZETA token to Solana at a 1:1 ratio. The proposal also outlines plans for a privacy-focused artificial intelligence application called ZetaLabs and for the gradual destruction of approximately 55 million ZETA tokens throughout 2027.

The vote is scheduled to conclude on November 7, and its outcome will determine whether the proposed restructuring of ZetaChain's network operations moves forward. If approved, the changes would end ZetaChain's operation as an active Layer 1 blockchain and convert ZETA into an SPL token on Solana. The breadth of that decision is notable: a single governance outcome would determine both whether ZetaChain continues to run a Layer 1 blockchain and what form its native token takes going forward.

ZETA Set to Move to Solana as an SPL Token

According to Wu Blockchain, the proposal would move ZETA from its current native network format to an SPL token on Solana. SPL is Solana's token standard for fungible assets and is the format used by most tokens issued on the network.

Under the proposed arrangement, holders would receive ZETA on Solana at a one-to-one conversion ratio, meaning each existing ZETA token would correspond to exactly one token on the destination network. For existing holders, the proposal would mean that balances transition from the ZetaChain network to Solana without a change in quantity, with each token honored at parity. The migration would also change ZETA's technical footing, taking it from the native asset of ZetaChain's own ledger to an asset issued under Solana's token standard.

Permanent Halt to Layer 1 Block Production

The plan represents a significant proposed change to ZetaChain's network operations. Rather than continuing block production on its Layer 1 blockchain, the network would permanently stop that activity on December 9 if the governance proposal receives approval. The halt is framed as permanent, with no resumption of Layer 1 block production contemplated — in other words, a wind-down of the chain itself rather than a temporary pause in activity. At that point, ZETA would no longer function as the native asset of an active Layer 1 chain, with the token's operations instead centered on Solana.

ZetaLabs to Introduce AI Services and Privacy Features

Alongside the proposed network transition, ZetaChain plans to launch ZetaLabs, described as a privacy-focused AI application tailored for financial markets. The project intends to integrate ZETA into the application's economic and governance structure, making the token a core component of the planned product.

According to the proposal, ZETA would serve several functions within ZetaLabs. Users would be able to spend the token to pay for AI services, unlock application features, and participate in product governance. These planned utilities would give ZETA a role within the proposed application beyond its existing use as the network's native token, covering payments, access, and governance within a single product.

However, the announcement describes these developments as part of a proposal and a planned launch. Their implementation remains tied to the outcome of the governance process and the project's subsequent execution.

Approximately 55 Million ZETA Slated for Burning

Another component of the proposal involves approximately 55 million ZETA originally allocated for validator rewards — the portion of ZETA set aside to compensate validators for securing the network. ZetaChain plans to burn these tokens in batches throughout 2027, rather than removing the entire amount in a single event. Burning would permanently remove the tokens from circulation, in line with standard token-burn practice.

The planned token burns would reduce the amount of ZETA associated with the original validator-reward allocation. The proposal does not specify additional details about the individual burn schedules or the resulting total token supply.

Governance Vote Concludes November 7

The governance vote is being conducted onchain, allowing network participants to register approval or rejection of the measure directly on the blockchain. The vote is scheduled to conclude on November 7, and its outcome will determine whether the proposed changes can proceed, including the December 9 halt to Layer 1 block production, the 1:1 migration of ZETA to Solana, the launch of ZetaLabs, and the planned 2027 token burns. Until the vote concludes, all of the measures described in the proposal remain plans rather than finalized commitments. The November 7 close is therefore the first milestone to watch, with the December 9 halt the next dated step in the plan if the measure is approved.

This article is based on a report by Hokanews written by Victoria Hale, a technology and blockchain writer covering blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Source: Hokanews