The Ethereum Layer-2 network blasts off when its operating costs exceed the revenue generated by the chain.
In a Friday post on X, Blast said it sees no “credible path” to making the network economically sustainable and asked users to withdraw their assets to the Ethereum mainnet.
“We launched Blast with the goal of creating a self-sustaining chain for users and developers,” the team said. “Unfortunately, the economics of chain management no longer make sense.”
Source: explosion
The network will reduce its withdrawal delay to 24 hours, although withdrawal will be temporarily unavailable while Blast unlocks its Lido resources, a process expected to take about a week.
Users have until October 26 to withdraw through Blast’s interface. After that, the assets will remain accessible, but users will need to contact the Blast Bridge contract directly on Ethereum for withdrawals.
Blast said it will publish instructions for direct withdrawals via bridge contracts before the Oct. 26 cutoff, and urges users to move their assets to the Ethereum mainnet before then.
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The explosion stems from Blur’s NFT boom
Blast was founded by Tieshun “Pacman” Roquerre, founder of NFT marketplace Blur, which launched in October 2022 and quickly challenged OpenC by targeting professional traders with token incentives. By the end of 2022, there was Blur has crossed OpenSea, the then-leading NFT marketplace in trading volume, has extended its lead into early 2023, driven in part by its token airdrops and trader rewards.
Roquerre unveiled Blast with a points program tied to Ether (ETH) and stablecoins and an expected token airdrop in November 2023. The strategy helped attract more than $2 billion in deposits before its original net on In February 2024.
Blast’s Defy TVL is down more than 98% from its June 2024 peak. Source: Dephyllama
However, sustaining blast growth amid a massive downturn in the NFT market has proven difficult. Its DeFi total locked value has steadily declined since peaking at roughly $2.2 billion in June 2024, falling more than 98% since then, according to DeFiLlama. Information.
Blur has gone through a similar decline. Its net worth is locked in, peaking at over $200 million in early 2024, now stands up About $27 million.
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