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ZetaChain shuts down its Layer 1 and moves ZETA to Solana

Guido Molinari Blockchain economics and tokenomics writer EgonCoin

Post by Guido Molinari

ZetaChain shuts down its Layer 1 and moves ZETA to Solana EgonCoin © egoncoin.com
ZetaChain shuts down its Layer 1 and moves ZETA to Solana © egoncoin.com

ZetaChain's community has voted to close its Cosmos-based Layer 1 and shift ZETA to Solana. The move shows why more crypto teams are leaving their own blockchains for bigger networks with more liquidity and better developer tools.

ZetaChain is shutting down its own Layer 1 and moving its main asset to Solana. In September 2026, the ZetaChain community voted to close the Cosmos-based Layer 1 and turn ZETA into a Solana SPL token. This isn't just a technical change. It's a public admission that running your own blockchain now brings more cost and hassle than benefit for most projects.

Why projects are leaving Layer 1

Running a standalone Layer 1 takes a lot of resources. Teams have to keep validators running, secure the network, maintain nodes, push upgrades, and pay for ecosystem incentives. If a project doesn't have enough users, transactions, or developer activity, the numbers don't work. Big public blockchains like Ethereum and Solana already offer strong execution, deep liquidity, and good developer tools. For most teams, building a Layer 1 from scratch no longer gives an edge. It just adds more work.

ZetaChain's Proposal 68 to migrate ZETA to Solana passed with 99.4% support, signaling near-unanimous community backing for the shutdown of its Layer 1.

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ZetaChain started out focused on cross-chain connections, using its own Layer 1 to link Bitcoin, Ethereum, Solana, and others. But as the team shifted to AI projects like Anuma, they had to ask: does the app really need its own chain, or just a solid place to run? The answer came through the 99.4% approval for migration. ZetaChain will now put its energy into building AI apps on Solana, not keeping a blockchain alive.

The real costs of running a blockchain

Running a Layer 1 is much harder than just launching smart contracts. Teams have to design and maintain consensus, set up validator rewards, run nodes, manage Gas, build wallet and RPC tools, pay for security audits, and support developers. These costs never stop. They grow as the network gets more complex. Without steady users and transactions, it's tough to pay for security and growth. Liquidity is another big problem. Users and developers won't move to a new chain unless there's a strong reason. DeFi needs stablecoins, trading depth, and lending markets to work.

ZetaChain's old setup needed constant work on validator rewards, upgrades, and cross-chain tools. Now that the focus is on AI, the team decided it makes more sense to use Solana's ready-made block space, security, and developer community.

The migration plan specifies a 1:1 conversion of native ZETA to Solana SPL, with the token's decimal precision adjusted from 18 to 9. Notably, ZETA tokens on Ethereum and BNB Chain are not affected by this transition, underscoring the targeted nature of the migration.

What happens to the token after migration

Leaving your own Layer 1 means you have to rethink what your token does. On a native chain, the token is used for Gas, staking, governance, and capturing value. Once you move to another network, these roles change. ZetaChain plans to turn ZETA into a Solana SPL token, one-for-one, with future use tied to Anuma's AI products and services-not network security or Gas. This forces a new question: if the token isn't needed for running the network, what gives it value?

For projects focused on apps, token value will depend more on how much people use the product, not on blockchain mechanics. ZETA's old roles in validator rewards and security will be replaced by new uses inside Solana.

More choices for projects

Teams now have more options than just building a Layer 1 or using an existing chain. Layer 2 networks and appchains offer different setups. Independent Layer 1s give full control but cost the most to run. Layer 2s use the security of big chains like Ethereum but keep some independence. Appchains can be tailored for special needs but still face ecosystem and security issues. For many, launching on a mature Layer 1 like Solana means giving up some control but gaining instant access to users, liquidity, and developer tools.

The real question is what the app actually needs. If the main value is in the product, user base, or app logic, building on a big public chain is often the best move. This is the same logic behind NEAR's recent shift to cross-chain settlement.

ZetaChain's public migration plan says the final move to Solana still needs more governance steps to set the block height and technical details. The team's goal is to focus on AI infrastructure and apps, using Solana's execution and developer base. Turning ZETA into a Solana SPL token is meant to fit the new app-focused direction.

As of September 20, 2026, the ZetaChain governance vote to close its Layer 1 and move to Solana passed with 99.4% in favor. The plan is to convert ZETA to a Solana SPL token one-for-one, with more governance steps to finalize the technical side. ZetaChain's old Layer 1 was built on Cosmos and focused on cross-chain links before the pivot to AI.

ZetaChain's move shows the blockchain world is changing. The days when every project needed its own chain are ending. Now, the real fight is for users, liquidity, and developer attention-not just block space. Projects that build strong apps on top of solid infrastructure will have the best shot at success. For most teams, running a Layer 1 now needs a very good reason. ZetaChain's shift will likely speed up this trend, as more projects see that infrastructure is just a tool, not the goal.

Running a Layer 1 means dealing with a lot of technical, economic, and operational work. Security, validator rewards, node upkeep, and ecosystem growth all need steady investment. Without enough users and liquidity, these costs can quickly outweigh the benefits. As public chains like Ethereum and Solana keep growing, it will get even harder to justify launching new independent chains. For most, the future is in building unique apps on shared infrastructure, not starting yet another Layer 1.

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