Router Protocol to Shut Down by Sept. 30 After Failed Business Model

Router Protocol will cease all operations by Sept. 30 due to an unsustainable business model. The cross-chain infrastructure project spent the past year exploring commercialization and acquisition opportunities, but none yielded results to support the team. Router cited the economics of cross-chain infrastructure, noting that bridge fees have decreased while operational costs remain fixed. It stated that the demand in crypto has shifted, leading to a decline in revenue necessary to sustain its infrastructure. Current usage data shows Router Nitro processing about 677 dollars in bridge volume over a 24-hour period on Sept. 7, with a market capitalization of approximately 56600 dollars. The project raised over 4 million dollars in 2021 from investors, including Coinbase Ventures, before launching its Layer 1 network in 2024. The closure announcement does not create a uniform withdrawal deadline for ROUTE token holders, as users on centralized exchanges must adhere to individual exchange schedules. Developers face challenges as the shutdown lacks a service-by-service timeline, requiring them to migrate before the protocol ends. Router plans to open-source certain technology components and will permanently burn 303.3 million ROUTE tokens, about 30% of its total supply.