Lisk is winding down its blockchain operations and transitioning into a business finance platform. A newly introduced proposal asks the Lisk DAO governance body to dissolve itself and burn 100 million LSK tokens from the DAO treasury, reducing the total supply from 400 million to 300 million tokens.
Launched via a 2016 crowdfunding campaign that raised over 14,000 BTC—making it the second-biggest crowd-funded crypto project at the time—Lisk previously reached a market capitalization of nearly $4 billion. In December 2023, the team abandoned its original Layer-1 network and rebuilt Lisk as an Ethereum Layer-2. The chain slated for closure in October is that reboot.
The wind-down proposal also includes making staking flexible, allowing holders to exit anytime following a three-day waiting period. LSK previously peaked at $34.92 in January 2018 and subsequently traded at lower levels, while Binance added the token to its Monitoring Tag in July.
Impact on Holders and Builders
Holders keeping LSK on Ethereum or on exchanges are not required to take action, and the contract and ticker will remain the same. However, users holding or staking tokens directly on the Lisk Chain must bridge their assets to Ethereum before October 31. Bridging requires at least seven days, and unstaking involves a three-day wait once the vote passes.
Following the transition, Base and Ethereum will serve as LSK's primary home, where the token will function as a loyalty asset for businesses using the platform to earn rewards and pay fees. For developers, Lisk has arranged a migration path to Celo in collaboration with the Celo Core Co. team. The Lisk Chain will remain supported until the official closure date, pending the results of the DAO vote.
