Router Protocol Shuts Down Amid Shift in Crypto Infrastructure Landscape
Router Protocol, an infrastructure firm backed by Coinbase Ventures, is shutting down its operations. The company announced it will burn approximately 303M ROUTE tokens from its treasury and cease all activities by September 30. This move affects about 30% of the total ROUTE supply.
The shutdown comes at a time when crypto infrastructure firms have shifted away from fee-based models. Router Protocol's founders cited decreasing demand for bridging services, citing cheaper alternatives as a major factor. They also mentioned that venture capital funding has shifted towards AI and blockchain adoption is becoming more concentrated on fewer chains.
The protocol had received $4.1 million in funding from investors like Coinbase Ventures, Polygon, Woodstock Fund, and QCP Capital. Router Chain, its own Layer 1 network, was launched but ultimately shut down due to security vulnerabilities and other issues. The company plans to open-source some of its developed software for others to use.
The shutdown marks the end of a four-year run for Router Protocol. Its token holders are left with less than 1% of its all-time high price. Exchanges will delist ROUTE pairs, and token holders on these platforms should consult their exchange's listing page for withdrawal instructions.