Lisk plans to shut down its blockchain after roughly 10 years and reposition itself as a business finance platform, according to a proposal now before the Lisk DAO. The plan would also dissolve the DAO and remove 100 million LSK from the treasury, cutting total token supply from 400 million to 300 million.

The move would mark another major shift for the project, which had already moved away from its original Layer-1 design in December 2023 and rebuilt as an Ethereum Layer-2. The proposed October closure would complete that transition and leave LSK centered on Ethereum and Base rather than on a standalone Lisk chain.

A treasury burn tied to a broader reset

Under the proposal, 100 million LSK held in the treasury would be burned, a 25% reduction in total supply. At the same time, the Lisk DAO would be dissolved as the project exits blockchain infrastructure and pivots toward software for business finance.

If approved, the change would redefine what the token represents. Rather than tracking activity around a dedicated blockchain, LSK would be tied to a software business model, with the token described as a loyalty asset.

What token holders need to know

The practical impact depends on where holders keep their tokens. LSK already on Ethereum or held through exchanges would not require any action, and the token’s contract and ticker are set to remain unchanged.

Users who still hold or stake assets on the Lisk Chain face a deadline. They must bridge their tokens to Ethereum before October 31. The process is not immediate: the bridge takes at least seven days, and stakers would have a three-day waiting period to exit after the vote, as staking is set to become flexible under the proposal.

Ethereum and Base become the main venues

Once the chain is shut down, Ethereum will remain a primary network for LSK, with Base, Coinbase’s Ethereum Layer-2, also becoming a main home for the token. That reflects Lisk’s longer-running shift away from maintaining its own chain.

The project says businesses will be able to earn rewards in LSK and use them for fees, fitting the token into the planned business finance platform rather than a standalone blockchain ecosystem.

Next checkpoint is the DAO vote

For developers still building around the current setup, Lisk says there is a migration route to Celo with support from the Celo Core Co. team. Meanwhile, the Lisk Chain will continue to be supported until the stated closure date.

The immediate next step is the DAO vote. If the proposal passes, Lisk’s October shutdown will proceed, the chain will be wound down, and the token supply will be reduced by the planned burn.

Source: beincrypto.com