TechFlow reports, on January 15, according to an official announcement by MilkyWay Protocol, the protocol is set to permanently shut down and initiate its liquidation process.
The announcement stated that the decision to close stems from factors including underwhelming growth in demand for decentralized finance, short-lived market demand for restaking, interruption of plans for tokenizing real-world assets, and insufficient funding.
MilkyWay completed a snapshot on January 14 and will automatically distribute protocol fees proportionally to MILK token holders in the form of USDC. All liquid staking functions have been disabled effective immediately, and existing positions will be automatically unstaked. Initially launched as the first liquid staking token (LST) provider for Celestia, MilkyWay later expanded into the Initia and Babylon ecosystems, and attempted to launch services including restaking, real-world asset tokenization, and payment cards.
