Router Protocol Shuts Down, Burning 303M ROUTE Tokens as Crypto Infrastructure Costs Rise
Routing Protocol, a cross-chain infrastructure project backed by Coinbase Ventures, has announced it will shut down all operations on September 30. The decision comes after the team spent over a year exploring commercialization and licensing agreements but failed to secure a sustainable business model.
The project's technology aimed to move assets and data between blockchains, but the economics of this market have weakened due to increased competition from standardized infrastructure and decreasing demand for standalone bridging services. The team also cited a shift in venture capital investment towards artificial intelligence, making it harder for infrastructure projects like Router to secure funding.
The shutdown will result in the permanent burning of 303 million ROUTE tokens, approximately 30% of the token's maximum supply. This move does not preserve the token's market infrastructure and exchange support is expected to decline.