Lisk is Shutting Down Its Blockchain After 10 Years. It was Once Worth $4 Billion
Back in 2016, Lisk was crypto's second-biggest crowd-funded project. Its LSK token reached a market cap of nearly $4 billion. Now, it's leaving blockchain completely and becoming a business finance platform. What went wrong?
According to reports, a proposal will ask the Lisk DAO, the project's governance body, to burn 100 million LSK tokens and dissolve itself.
Why Lisk is Walking Away From Its Own Chain
Lisk has retreated once before. Its 2016 crowdfunding raised more than 14,000 BTC, which was worth about $5.7 million. Only Ethereum's 2014 sale had raised more at the time.
In December 2023, the team abandoned its original Layer-1 (L1) and rebuilt Lisk as an Ethereum Layer-2. The chain closing in October is that reboot, barely two years old.
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100 Million LSK Burn and the End of the DAO
The wind-down proposal, published on the Lisk Governance Forum, would burn 100 million LSK from the DAO treasury. Total supply would drop from 400 million to 300 million tokens, a 25% cut. Staking would also turn flexible, letting holders exit anytime after a three-day waiting period.
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