Particle.news
Download on the App Store

Router Protocol to Shut Down and Burn 303 Million ROUTE Tokens

Router said compressed bridge fees plus fixed operational costs made its business unsustainable, prompting a coordinated wind-down.

Overview

  • Router announced it will cease all operations by Sept. 30, 2026 and permanently burn 303,333,198 ROUTE tokens, equal to roughly 30% of the near 1 billion supply.
  • The team cited thin bridging economics — low fees from competitive routing against always-on costs like relayers, validators and monitoring — as the main reason for the closure.
  • Router disclosed two 2025 security incidents, recovering about 80% of funds from a February exploit but not the losses from a separate July chain-level breach, which worsened financial strain.
  • Markets reacted sharply after the announcement, with ROUTE falling roughly 50% to an all-time low and exchanges such as KuCoin suspending deposits while they set delisting and withdrawal timetables.
  • The team will open-source selected components, will not start new token programs, and urged holders and developers to migrate assets before relayer shutdowns during the wind-down period.