Blast Shuts Down Layer 2 Operations Due to Unsustainable Economics

Blast, a Layer 2 protocol for Ethereum, announced that it will shut down its operations due to unsustainable economics. The company stated that its operating costs exceed the revenue generated by the network's Layer 2 activity. Users have until October 26 to withdraw their assets through the normal interface, after which they will need to use direct interaction with the project's bridge contracts on Ethereum's mainnet.

The decision to shut down was made after Blast's analysis showed that its costs of operation are higher than the revenue generated by the network. The company provided no further financial figures or a timetable for fully retiring the network. Users are advised to begin withdrawing their assets through the existing interface.

After October 26, assets will still be withdrawable through direct interaction with Blast's Ethereum L1 bridge contracts. However, there will be a temporary interruption in the withdrawal process while Blast unwinds assets held through Lido. This pause is expected to last about one week, with withdrawals resuming with a 24-hour delay.