Coinbase-Backed Router Protocol Shuts Down Amid AI Investment Shift

Router Protocol, a cross-chain infrastructure project backed by Coinbase Ventures, is shutting down. The team announced that all operations will cease by September 30, 2026.

The decision comes after a year-long effort to commercialize the technology through licensing agreements and potential sales. However, none of these paths led to a sustainable business model.

Raise in AI investment capital and decreased bridging fees have significantly impacted Router's demand for its services. According to the team, 'bridging economics are thin, compressing fees against costs that never sleep.'

In preparation for the shutdown, 303 million ROUTE tokens will be burned, representing approximately 30% of the token's total supply.