TL;DR
- Lisk plans to shut down its blockchain on October 31, 2026, ending roughly a decade of operating its own network.
- A DAO proposal would burn 100 million LSK, reducing total supply from 400 million to 300 million.
- LSK held on Lisk Chain must be bridged to Ethereum before closure, while the project shifts its focus toward a business finance platform.
Lisk is preparing to close its blockchain on October 31, 2026, marking a major change for a project that has operated in the crypto sector for about a decade. The network will no longer serve as the foundation of the project as Lisk redirects resources toward software for business finance.
The restructuring also includes a proposed 25% reduction in LSK supply. The Lisk DAO proposal would burn 100 million LSK from treasury allocations, taking the maximum supply from 400 million to 300 million tokens. That move removes tokens that were previously scheduled to enter circulation through future vesting.
The decision follows several changes in Lisk’s long-term strategy. The project originally launched as a Layer-1 blockchain before moving toward an Ethereum Layer-2 model in 2023. Lisk now says its new direction centers on a finance platform designed for businesses, with stablecoins, payments and financial operations becoming more important to the product.
Lisk is entering a new chapter.
Ten years brought us to today, and what lies ahead has never been more exciting.
Here’s what you should know, and what it means for you, whether you’re a finance professional, Lisk builder, or LSK holder and DAO member. https://t.co/Nd2cUiC7Jf
— Lisk (@Lisk) August 25, 2026
Lisk Chain Closure Reshapes The LSK Token
The shutdown does not mean the LSK token disappears. Lisk says the token contract and ticker remain unchanged for holders using Ethereum or exchanges. Base is expected to become LSK’s primary network alongside Ethereum, while the token takes on a loyalty role within the new business platform.
For users holding LSK directly on Lisk Chain, however, the October 31 deadline matters. Those tokens must be bridged to Ethereum before the closure. Lisk says the bridging process takes at least seven days, while stakers face a three-day waiting period after unstaking.
The proposal also seeks to make staking more flexible by removing the penalty for emergency unlocking. A three-day waiting period would remain before funds become available, giving holders a clearer exit mechanism as the blockchain approaches shutdown.
A Supply Cut And A New Business Model
The proposed burn comes alongside the planned dissolution of the Lisk DAO. Governance contracts and the forum would eventually be wound down, ending the structure that previously controlled treasury allocations and project decisions. The proposal would also transfer roughly 47 million LSK from the DAO treasury to Lisk Ltd, the company behind the project.
Lisk argues that maintaining an independent blockchain became difficult to justify after years of ecosystem development. The project says its Layer-2 strategy struggled to generate enough revenue to sustain the incentive cycle, while token-based incentives contributed to selling pressure.
