ZetaChain, Linera, Switchboard Cease Operations

ZetaChain, Linera, and Switchboard have consecutively ceased operations. Photo: Fortune

ZetaChain Shuts Down Layer-1 Blockchain

ZetaChain will shut down its layer-1 blockchain that raised $27 million. The decision comes amid a wave of crypto projects downsizing in 2026, with Linera and Switchboard being the latest.

On September 20, the ZetaChain community approved a proposal to halt the layer-1 blockchain and migrate ZETA to Solana, marking the end of a network that was built to connect Bitcoin, Ethereum, and many other blockchains.

We are proposing to bring ZETA to Solana and along with it @AnumaAI, an AI app with 300,000 users.

Why Solana, what changes for ZETA holders, and where to vote: https://t.co/EeHZNvMose pic.twitter.com/cNNafUzUdu
--- ZetaChain 🟩 (@ZetaChain) September 17, 2026

Proposal number 68 received 99.4% approval, while the opposition and abstention rates were both at 0.3%. 58% of voting rights participated, exceeding the minimum threshold of 40%.

According to the plan, ZETA will be converted into a native SPL token on Solana at a 1:1 ratio, maintaining the trading code and total supply. The current token unlock schedule will also remain unchanged. This plan does not apply to ZETA currently existing on Ethereum and BNB Chain.

A second proposal will determine the snapshot date for balances, the last block of the network, how to receive new ZETA, and the process for withdrawing assets that are connected to other blockchains. The proposal will only be put to a vote after exchanges confirm the token conversion plan.

ZETA staking will continue during the transition period. The staking mechanism and rewards after moving to Solana have not yet been finalized.

In 2023, the project raised $27 million from investors Blockchain.com and Jane Street Capital to build a blockchain that allows developers to use assets from multiple networks, including Bitcoin and Ethereum, within the same application. The ZetaChain mainnet is set to go live in early 2024.

Three years later, the project's focus has shifted to Anuma, a privacy AI application launched in February 2026. According to data released by ZetaChain, Anuma currently has over 300,000 users and has processed more than one million requests across 35 AI models. The system allows user memory to be stored in an encrypted form and used across multiple models; ZETA holders can lock tokens to receive credits for using AI services.

The development team believes Anuma no longer needs a separate blockchain and can directly leverage Solana's infrastructure. Maintaining ZetaChain as a blockchain built with Cosmos SDK also adds overhead, as each security patch must be coordinated among dozens of independent validators.

This risk became clearer after the incident in August, when six Cosmos EVM blockchains were attacked and approximately $5.7 million in assets were stolen. ZetaChain was not among the affected networks, but the incident highlighted the increasing security costs for an independent blockchain.

After the vote, ZETA dropped about 2.5% and then rose nearly 6% in the last 24 hours. At the time of reporting, the token was trading around $0.04 each.

ZETA price fluctuations in the last 24 hours, screenshot on CoinGecko at 10:10 AM on September 21, 2026.

Linera and Switchboard Follow Suit

Two days before ZetaChain, Linera, a layer-1 blockchain backed by a16z Crypto, also announced it would cease operations after its token sale on Sonar raised only about $900,000, falling short of the minimum target of $1.5 million USDC. All funds from participants have been refunded.

Refunds for the $LNRA sale have been completed

Funds were automatically sent back to the wallets from which they were committed

We once again thank you for your support
--- Linera ⛓️ (@linera_io) September 9, 2026

Linera had sought emergency funding to maintain operations until the mainnet launch but was unsuccessful. The project had to shut down its application and Discord channel, and while user points accumulated will remain, there is no guarantee they will hold value in the future.

Linera had previously raised $12 million through two funding rounds in 2022 and 2023, led by a16z Crypto and Borderless Capital. Ultimately, the project ran out of funds before launching the mainnet.

Just one day later, Switchboard Technology Labs, the developer of the Switchboard oracle protocol, also announced it would cease operations on September 25. The company cited a weakening market, a decrease in new blockchains, budget cuts from clients, and AI tools that have lowered the cost of building oracle services.

https://t.co/rz5jcK7dJp
--- Switchboard Foundation Group ⚡ (@SwitchboardFDN) September 18, 2026

According to RootData, the list of crypto projects shutting down in 2026 has surpassed 260 names and continues to rise. Specifically, the portfolios of five major funds, including Coinbase Ventures, YZi Labs, Pantera Capital, a16z, and Paradigm, have 216 projects marked as closed, equivalent to 21.75% of the total 993 unique investments tracked by RootData.