Lisk to Shut Down Its Blockchain and Pivot to Business Finance Platform

Lisk announced a proposal to wind down its blockchain operations by October 31. The plan includes burning 100 million LSK tokens from the DAO treasury, reducing total supply from 400 million to 300 million, and shifting the project toward a business finance platform built on Ethereum and Base.

Background

Founded in 2016, Lisk was the second‑largest crowd‑funded crypto project at the time, raising over 14,000 BTC (about $5.7 million) and reaching a market cap near $4 billion. After an initial Layer‑1 launch, the team abandoned that chain in December 2023 and rebuilt Lisk as an Ethereum Layer‑2, a network that has existed for less than two years.

Shutdown Proposal Details

• Burn 100 million LSK from the DAO treasury, cutting supply by 25%.
• Staking will become flexible, allowing exits after a three‑day waiting period.
• Token holders on the Lisk Chain must bridge to Ethereum before the October 31 deadline; bridging takes at least seven days.
• After the shutdown, LSK will continue to exist as an ERC‑20 token on Ethereum and Base.

Impact on Holders and Developers

LSK held on Ethereum or exchanges does not require action. Users staking on the Lisk Chain need to bridge and unstake before the deadline. Developers will receive a migration path to Celo, coordinated with the Celo Core team.

Market Context

LSK peaked at $34.92 in January 2018 and fell to around $0.09 at the time of the announcement, a decline of over 99%. Binance placed LSK on a monitoring tag for potential delisting in July 2026.