Blast to Shut Down as Profitability Worsens, Urges Asset Withdrawals by Oct. 26
Summary
- Ethereum layer-2 (L2) network Blast said it will shut down because of worsening profitability.
- Blast urged users to move their assets to the Ethereum mainnet by Oct. 26.
- Blast said it will resume withdrawals and apply a 24-hour waiting period after retrieving assets from Lido, and urged users to complete withdrawals before Oct. 26 if possible.
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Ethereum layer-2 network Blast said it will shut down after worsening profitability made operations unsustainable. The project urged users to move their assets to the Ethereum mainnet by Oct. 26.
Blast said in an official X post on Oct. 2 that the cost of maintaining the chain had exceeded the revenue generated by the layer-2 network, and that it had failed to find a realistic path to economically sustainable operations. It also apologized to users and developers, adding that its top priority would be a safe and orderly wind-down.
To support withdrawals, Blast will cut the waiting period to 24 hours. First, however, it will retrieve assets it had deposited with Lido. Withdrawals will be temporarily suspended during that process, which is expected to take about a week. Even after the waiting period is reduced to 24 hours, users will not be able to withdraw assets until the Lido retrieval is complete.
Once the Lido asset retrieval is completed, withdrawals will resume and the 24-hour waiting period will apply. Balances held in the Blast web app (PWA) must also be moved to the Ethereum mainnet.
Withdrawals through the existing Blast interface will be supported through Oct. 26. After that, users will still be able to withdraw assets, but they will have to interact directly with the Blast bridge smart contract on the Ethereum mainnet. Blast said it will provide detailed instructions in advance and urged users to complete withdrawals before Oct. 26 if possible.
