Router Protocol will cease operations on September 30 and burn 303,333,198 ROUTE tokens held in its treasury.
The Coinbase Ventures-backed cross-chain infrastructure company announced the closure Friday through a post on X. The decision ends four years of development after attempts to secure a buyer or sustainable commercial agreement failed.
ROUTE holders face exchange delistings while the token trades below 1% of its record high. Router will coordinate with centralized platforms, although each exchange will establish trading and withdrawal deadlines.
Router Protocol Ends Its Four-Year Development Run
The planned burn represents 30% of ROUTE’s total supply of nearly one billion tokens. Holders using centralized exchanges should review listing pages and withdraw tokens before each platform’s deadline.
After delistings, Router will not start ROUTE projects. The organization will remain uninvolved with markets or liquidity pools created afterward.
The team plans to open-source software, allowing developers to use its technology.
Router spent the past year exploring licensing, business models, and a possible acquisition. None produced an arrangement capable of supporting the protocol’s team and continued development.
Lower Bridging Fees Weaken Router Protocol’s Business
Router attributed the closure to industry pressures. Venture funding moved from cryptocurrency toward artificial intelligence, while cross-chain bridging costs declined industrywide.
Blockchain activity became concentrated across fewer networks, reducing demand for customized infrastructure. Those changes undermined the economics supporting Router’s services.
“Bridging economics are thin, forcing fee compression against costs that never rest,” the founders said.
Router employed fewer than 10 people and relied on fundraising rather than operating revenue during development. In 2021, the company raised $4.1 million from Coinbase Ventures, Polygon, Woodstock Fund, and QCP Capital.
Polygon co-founder Sandeep Nailwal also invested individually. Router operated from Singapore, while most developers worked from India.
CEO Ramani Ramachandran founded the company alongside Shubham Singh, Chandan Choudhury, and Priyeshu Garg.
Security Problems Added Pressure Before Closure
Router Chain launched in July 2024 as a proof-of-stake Layer 1 network. ROUTE served as its gas, governance, and security token.
The company unwound the chain in September 2025, citing infrastructure expenses, validator inflation, security weaknesses, and changing priorities. It then focused on Open Graph Architecture for developing bridges and trading networks.
Router experienced two security incidents. A February 2025 exploit ended with 80% of affected funds recovered through negotiations.
A chain-level attack followed in July, and no funds were recovered. The developers said all protocol fees supported ROUTE purchases.
Router joins other infrastructure businesses that recently closed. Syndicate Labs ended operations in May, blaming a shrinking rollup market and demand shifting toward custom chains.
Bitcoin Layer 2 developer Botanix closed in June after finding that transaction fees could not cover expenses.
