Lisk Abandons Emerging Markets Blockchain Strategy Amid Revenue Woes

Lisk's ambitious plans to become a major player in emerging markets have been put on hold. The blockchain project announced that it will shut down its Ethereum Layer-2 network on October 31, 2026, due to unsustainable revenue generation and high ecosystem incentives.

Lisk had invested heavily in Africa, launching a $15 million fund to back Web3 startups across the continent, Latin America, and Southeast Asia. The company sought to build an ecosystem around African startups using blockchain for payments, financial services, and other applications.

The shutdown is a significant setback for Lisk's strategy, which had positioned emerging markets as key growth drivers. The company will now shift focus to providing business finance tools using existing financial and blockchain infrastructure.