Blast Will Shut Down as Operating Costs Outpace Revenue

Blast plans to permanently close its Ethereum Layer 2 network, citing operating costs that exceed revenue, and is urging users to withdraw assets to Ethereum by Oct. 26.

The team said the network’s economics no longer make sense and that it sees no credible route to making operations financially sustainable. It said its priority is to manage the shutdown and withdrawals safely.

Withdrawals will initially be unavailable for about a week while Blast removes staking assets held through Lido. After that step, withdrawals are expected to resume with a 24-hour delay. Users should use Blast’s standard interface to withdraw by Oct. 26. After the deadline, assets will remain withdrawable, but users will need to interact directly with Blast’s bridge contract on Ethereum’s main network; technical instructions are to follow.

Blast is an Ethereum scaling network that promoted built-in yield for bridged Ether and stablecoins. Its shutdown would end operations of the network, while the announced withdrawal process gives users a path to move assets back to Ethereum.