Blast Layers Down: Ethereum Network Shutters Due to Unsustainable Costs

The Ethereum layer-2 network Blast plans to shut down due to unsustainable operating costs. The project, which received $20 million in funding from Paradigm and Standard Crypto in November 2023, will wind down its operations through an asset withdrawal process that includes a temporary withdrawal pause and an Oct. 26 exit deadline.

Blast's decision comes after nearly three years of operation, during which time the network's maintenance costs exceeded its revenue. The project's yield model, which aimed to let users benefit from returns earned by underlying protocols like Lido and MakerDAO, is no longer economically viable.

Users are advised to withdraw their assets before Oct. 26, as normal-interface withdrawals will end on that date. Afterward, assets can still be recovered through Blast's Ethereum mainnet bridge contracts. The Lido unwind process, which is expected to take approximately one week, will temporarily interrupt user withdrawals.