Lisk to Wind Down Blockchain Operations

Swiss-based blockchain infrastructure company Lisk is shutting down its public blockchain, marking a significant shift in strategy towards financial software for businesses. The shutdown will occur on October 31, 2026, with the company also planning to wind down its decentralized autonomous organization (DAO).

Impact on African Startups

The decision could impact early-stage Web3 startups in Africa that received funding through Lisk’s ecosystem. In 2025, African blockchain startups raised $90.1 million—a 26.6% decrease from the previous year—highlighting the growing need for alternative funding sources.

Lisk had established a presence in emerging markets like Africa by investing in companies such as:

  • Azza: Nigerian WhatsApp-based stablecoin payments company
  • ClapMi: Nigerian social-finance platform
  • LovCash: South African digital supply-chain startup
  • Afrikabal: Rwandan agritech marketplace

These startups benefited from Lisk’s EMpower Fund, which provided both capital and mentorship.

Reasons for the Shutdown

According to Lisk, the blockchain failed to generate sufficient revenue while facing challenges such as:

  • Increasing token supply through grants and incentives
  • Declining token price
  • Operational fragmentation across stakeholders
  • Limited real-world utility

“The current trajectory needs correction to improve the project’s long-term standing,” Lisk stated in a forum announcement.

What Happens Next?

  • The native LSK token will continue trading on Ethereum and Base networks
  • Users with LSK on the Lisk Chain must migrate their tokens before shutdown
  • Developers can explore migration options to blockchains like Celo
  • Lisk plans to burn 100 million LSK tokens from the DAO treasury

With over $139,000 in total value locked (TVL) and minimal daily activity, Lisk’s blockchain has clearly contracted—a trend evident since early 2026 when TVL stood at $5.47 million.

The company’s new financial software platform aims to provide a centralized workspace for managing money across organizations, countries, and currencies.