TREE NEWS update: Blast announced it is winding down operations, saying the cost of maintaining the chain now exceeds the revenue its L2 generates and that no credible path to economic sustainability exists. The network told all users to withdraw assets, including balances in the Blast PWA, to Ethereum mainnet, and said withdrawal delays will be cut to 24 hours. Blast will first withdraw its Lido assets, a process expected to take about a week, during which withdrawals will be temporarily unavailable.
Blast to Shut Down, Tells Users to Withdraw Assets to Ethereum by Oct 26
Blast's shutdown is a reminder that L2 economics can be brutal when a chain's revenue can't cover its own maintenance, and the decision to prioritize users' exit to Ethereum mainnet—rather than attempt a rescue—signals a pragmatic wind-down. The immediate concern is operational: the temporary withdrawal freeze while Lido assets are unwound, followed by a 24-hour delay, creates a window where users must act to avoid being stranded. The broader question is whether this becomes a template for other L2s facing similar cost-revenue squeezes, and whether the promised 24-hour withdrawal window holds once the Lido process completes.
Generated by AI for reference only.
Share on WeChat
Open WeChat → Scan → then tap "…" to send to a chat or Moments.
Tap "…" in the top-right corner to send to a chat or share to Moments.