Lisk Abandons Its Blockchain to Become a Financial Platform

Lisk is abandoning its blockchain to reinvent itself as a financial management platform aimed at multi-entity businesses. The project is becoming a unified platform for financial teams, integrating bank accounts, stablecoin payments, and approval workflows, relying on Bridge, a subsidiary of Stripe. The Lisk Chain will shut down on October 31, allowing developers to migrate their applications to Celo, with which a partnership has been established. Lisk had already pivoted in December 2023 by abandoning its Layer 1 for an Ethereum Layer 2. A proposal submitted to the Lisk DAO plans to burn 100 million LSK tokens, reducing the total supply from 400 million to 300 million units. Staking will become flexible, allowing holders to withdraw their tokens without penalty after a three-day waiting period. Governance infrastructures will be gradually dismantled. Holders of LSK on Ethereum or on an exchange platform do not need to take any action, while those on the Lisk Chain must migrate to Ethereum before October 31. Ultimately, Base, Coinbase's Layer 2, will host the LSK, which will become a loyalty token. The LSK was trading at around $0.09, over 99% below its all-time high of $34.92 reached in January 2018.

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