Blast

What did it do?

Blast was a layer-2 network running on Ethereum. Its headline promise was that ETH and stablecoins deposited on the network would earn yield automatically: ETH through staking, stablecoins through on-chain protocols backed by treasury bills, with the yield returned to users through a stablecoin called USDB. The network was built by the team behind the NFT marketplace Blur; several outlets name its founder as Blur co-founder Tieshun Roquerre, known by the pseudonym Pacman.

Why did it shut down?

On 2 October 2026 Blast wrote on X that the cost of maintaining the network exceeded the revenue it generated and that it saw no credible path to making the chain economically sustainable. Users were told to move their assets back to Ethereum mainnet: withdrawals would pause for about a week while assets were pulled out of Lido, then run with a 24-hour delay through the normal interface until 26 October 2026; after that date funds can be withdrawn only by interacting directly with the bridge contracts on Ethereum.

According to DeFiLlama data cited by The Block, the value locked on the network was around USD 32 million in October 2026; at the mainnet launch in February 2024 it had passed USD 2.3 billion, according to Decrypt. What drew users was the yield promise and the expectation of points and rewards; after the distribution of June 2024, no lasting source of usage and revenue took shape. According to The Block, the BLAST token fell 17% on the day of the announcement, to a market value of about USD 23 million.

The story

In November 2023 Blast appeared with a USD 20 million round backed by Paradigm and Standard Crypto. The pitch was simple: move your money to this network on Ethereum, and your ETH and stablecoins earn yield without you doing anything. The network had been built by the team behind the NFT marketplace Blur.

The launch was set up in an unusual way: before mainnet opened, users could deposit into the bridge but could not withdraw until February 2024, and an invitation and points scheme was designed to grow deposits. According to Decrypt, even its backer Paradigm publicly criticised the launch messaging. The money flowed anyway: according to Decrypt, deposits passed USD 1.1 billion before the network went live, and value locked in the bridge passed USD 2.3 billion at the mainnet launch in February 2024.

In June 2024 the BLAST token was distributed, with 17% of total supply set aside for early users. According to Decrypt, many users were disappointed by the distribution, and value locked had already slipped about 30% from its peak that month. Once the rewards were out, there was little to keep deposits on the network.

On 2 October 2026 Blast announced that running the network cost more than it earned and that it saw no sustainable path. According to DeFiLlama data cited by The Block, value locked on the network stood at around USD 32 million that day. Users were given a route to withdraw through the normal interface until 26 October 2026 and directly through the bridge contracts after that.

The story shows how more than two billion dollars of deposits in 2024 did not turn into revenue that could carry the network once the expectation of rewards was gone.

Lessons for founders

• Capital that arrives for points and rewards leaves once the rewards are paid out; billions in deposits in 2024 are not revenue without lasting usage.
• Running a network or a platform has fixed costs that continue even when activity falls. Build the revenue model for the cost on its worst day.
• Showcase numbers such as value locked or sign-ups are not proof of product-market fit; the real question is who stays and pays once the rewards end.
• Returning users' money safely when you close is part of the product: clear dates, a long withdrawal window and a route that still works after the deadline protect trust.

Sources

1. Paradigm-backed Layer 2 Blast to wind down network as costs exceed revenue (The Block, 2026-10-02)
2. Once a $2.3 Billion Network, Ethereum Layer-2 Blast Is Shutting Down (Decrypt, 2026-10-02)
3. Blast L2 project raises $20 million from Paradigm and Standard Crypto (ForkLog, 2023-11-21)
4. Blast Token Debuts at $3B Value as 17% of Supply Airdropped to Early Adopters (CoinDesk, 2024-06-26)

This section is compiled from public sources (Wikidata, news archives and company announcements). Figures are given as they appear in those sources; unknown fields are left blank. If you spot a mistake in an entry, you can send us a correction.

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