Botanix Labs, a developer of a Bitcoin layer-2 network, will end network operations after about 4 years of development, The Block reported on Tuesday (local time).
Botanix cited limited demand for Bitcoin-native decentralised finance as too small to sustain the network’s economics, the report said.
The Botanix project aimed to build a Bitcoin-based application layer without relying on its own token incentives or inflation. But actual transaction demand did not cover underlying infrastructure costs.
In a post on social media platform X, Botanix said: "The honest answer we reached after living in it every day is that, at least in this market and at this point in time, it did not work."
There were technical achievements. The Block reported that Botanix’s Spiderchain infrastructure recorded 100 percent uptime and zero security incidents over 1 year of mainnet operations.
But user activity focused on long-term asset storage rather than high-frequency trading, it added, limiting fee revenue generation.
Chi-gyu Hwang
delight@d-today.co.kr