Blast Ethereum Layer-2 Network to Shut Down on October 26

The Ethereum layer-2 network, Blast, has announced its shutdown due to high maintenance costs exceeding revenue generation. The network, launched in November 2023 with $20 million in funding from Paradigm and Standard Crypto, will cease operations on October 26. During the wind-down process, users will face a temporary withdrawal pause, followed by a 24-hour delay on withdrawals. After October 26, assets can still be withdrawn through bridge contracts on the Ethereum mainnet.

Blast's decision to shut down comes as the network's yield model, which was intended to benefit users from returns earned by underlying protocols, is no longer economically viable. The network's design, which includes Lido and MakerDAO as yield sources, will be unwound, and users are advised to move their assets to the Ethereum mainnet before the October 26 deadline. The Lido unwind is expected to take approximately one week.

Blast has promised to publish detailed instructions for withdrawing assets through bridge contracts on the Ethereum mainnet, which will become the only option after the shutdown. The shutdown announcement gives users approximately three weeks to move their assets before the October 26 deadline.