Botanix, the Bitcoin scaling network set out to make it easier for users. “real utility” After four years, BTC is no longer offering token incentives.
On a Tuesday post Botanix has told users on X to remove all Bitcoins, and any other assets they may have by the 9th of July. After that date, remaining assets are swept. “be unrecoverable.”
This decision was made despite the integration of major crypto infrastructures, such as Chainlink, Fireblocks, and Galaxy, along with the launch of an app for Bitcoin Neobanks aimed at consumers.
Botanix Spiderchain Architecture combines An Ethereum-compatible chain that uses a proof-of stake consensus.
This structure enabled it to provide a programmability similar to Ethereum for Bitcoin, while still relying on validators and dynamic federations rather than solely on Bitcoin’s consensus.
In its notice of shutdown, the team claimed that although the technologies and products were functional, they failed to meet the criteria for a product-market fit which was sustainable or an economic fit.
Botanix has shut down. Source: Botanix
Botanix says that users are still primarily using Bitcoin to reserve assets and as yield vehicles, not something they use often in onchain apps. They also say the demand for Bitcoin decentralized finance is being met mostly by BTC wrapped up on Ethereum.
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It was also noted that Botanix, a network with a heavy infrastructure, struggled to earn enough revenue from fees to pay for their expenses due to heightened attention on trading platforms, large exchanges and other traditional financial intermediaries.
The deadline for withdrawal of assets is July 9.
Botanix warns that those who do not remove Bitcoin and assets other than Bitcoin by the 9th of July will lose their access. Botanix highlights to retail users how dangerous it is when DeFi platform experiments are closed.
Citrea is a recent project that uses a mixture of Bitcoin anchoring and Proof-of-Stake designs and token incentives.
Citrea co-founder and chief executive Orkun Mahir Kılıç told Cointelegraph Botanix’s experience is less an indictment of Bitcoin DeFi than of “a cloning-first approach” This largely duplicated the existing EVM protocol without providing long-term BTC owners with a unique value proposition.
Citrea instead focuses on applications, according to him. “fundamentally require Bitcoin’s specific architecture and trust-minimized settlement,” To avoid competing in the same way as a generic chain and to differentiate from it, focus more on specific use-cases like Bitcoin-native markets and private payments rather than lending or trading forks.
Cointelegraph contacted Botanix to get a comment, but received no response before publication.
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Source: cointelegraph.com
