BLAST Layer-2 Network Shuts Down Due to Unsustainable Economics

The Ethereum Layer-2 network Blast (BLAST) is winding down operations, citing unsustainable economics. The team behind BLAST notes that the network's operating costs exceed its revenue, making it difficult to sustain the chain.

In an X post, the BLAST team explained that the decision to shut down the network follows a decline in chain revenues, which dropped to $110 in the past 24 hours, with chain fees standing at $124. This decline is unsustainable, and the team does not see a credible path to making the chain economically sustainable.

BLAST launched in November 2023 with a $20 million funding round led by Paradigm and Standard Crypto. The network was built around a native-yield model, with ETH and stablecoins deposited on the chain generating yield through underlying protocols.

Users have been given a withdrawal deadline of October 26. The shutdown process will involve withdrawing BLAST's assets from Lido, a process expected to take approximately one week. During that period, user withdrawals will be temporarily unavailable.