The story of Lisk, once one of the biggest names in the cryptocurrency industry, is coming to an end. The project, which raised the second-largest crowdfunding amount in industry history in 2016, has officially announced a complete abandonment of its own blockchain. This decision marks not just a rebranding, but a radical shift in direction: Lisk is transforming into a platform for business finance, fully renouncing its technological foundation.
The path from triumph to obscurity
The scale was impressive. In 2016, the team raised over 14,000 BTC (about $5.7 million at the time), second only to Ethereum in that metric. The market capitalization of the LSK token soon reached nearly $4 billion, and the project itself was considered one of the most promising in the ecosystem. However, a series of strategic mistakes and failed pivots followed.
As early as December 2023, the team abandoned its own layer-1 network (L1), migrating to Ethereum as a layer-2 solution (L2). Now, less than two years later, this updated version is also being shut down. The network running on Ethereum will be fully decommissioned in October. This is the final point in the project's ten-year history.
Burning 100 million LSK and dissolving the DAO
The proposal put to a vote by the Lisk DAO governing body includes radical measures. It plans to burn 100 million LSK tokens from the DAO treasury, reducing the total supply from 400 million to 300 million, a 25% cut. The staking mechanics will also change: holders will be able to withdraw funds at any time after a three-day waiting period.
The reasons for this decision are obvious when looking at the price chart. In January 2018, LSK traded at an all-time high of $34.92. The current price is around $0.09—more than 99% below peak values. A low of $0.07 was recorded on August 3, just three weeks before this announcement. Add to that the recent inclusion of the token on Binance's monitoring list as a delisting candidate—and the picture becomes completely clear.
What this means for holders and developers
For LSK holders on Ethereum and exchanges, nothing will change—the contract and ticker will remain. However, those holding tokens on Lisk Chain or in staking need to transfer them to Ethereum via the bridge by October 31. The process will take at least seven days, and exiting staking will add another three days after the vote is approved.
Developers will be offered migration to the Celo network, which itself transitioned from an independent L1 to an L2 solution on Ethereum in March 2025. Businesses on the platform will be able to earn rewards in LSK and use the token to pay fees. Coinbase's Base network will become the primary venue for LSK alongside Ethereum itself.
After the DAO vote, LSK will cease to track a blockchain and will become a token tied to a software business. This is not just a project closure—it is an acknowledgment that in today's crypto landscape, only those able to adapt faster than the market survive. Lisk, unfortunately, lost that race.
My verdict: the decision to burn tokens and dissolve the DAO is an attempt to preserve some value for holders, but in essence, it is a capitulation. Lisk's story is a classic example of how early success and ambitious plans do not guarantee long-term viability without constant innovation and alignment with market realities. Investors should take a lesson: hype and crowdfunding records are not an indicator of a project's future sustainability.