Layer-2 Network Blast Announces Shutdown Amid Unsustainable Costs
A layer-2 Ethereum network called Blast has announced it will shut down due to unsustainable operating costs. The project, which raised $20 million in funding from Paradigm and Standard Crypto in November 2023, cited a lack of economically viable path forward.
Blast's shutdown is set for an asset withdrawal process that will temporarily disrupt users' ability to exit the network. The project has asked users to move their assets to Ethereum mainnet by October 26 to withdraw through its normal interface.
The network, which aimed to pass yield from Ethereum staking and real-world-asset protocols to users, identified Lido and MakerDAO as key sources of income. However, Blast now says these operating economics no longer justify keeping the network running.