Who Will Control Users' Final $51,000,000 As Ethereum Network Blast Shuts Down?

Blast, an Ethereum Layer 2 network that held $2.24 billion in June 2024, announced on Friday, October 2, 2026, that it will stop operating. The team said the network costs more to run than it generates, with no credible solution in sight, and recorded only $110 in chain revenue over the past day. The shutdown shifts attention to about $51 million still sitting in Blast contracts on Ethereum, where five keyholders control the system.

Economics collapsed after a reward-led launch

Blast was designed as a cheaper side network on top of Ethereum. It paid interest on deposits and promised a token reward, drawing users who came for the yield and reward structure. The Blast token, BLAST, fell 19% on the news, according to BeInCrypto.

The team’s statement said Blast had been built to become a self-sustaining chain for users and developers. It concluded that the ongoing maintenance costs had exceeded the revenue the network could produce, making the model no longer viable.

Tieshun Roquerre, the founder known online as Pacman, also created Blur, a marketplace for digital collectibles. In a separate farewell message, he said he was disappointed the chain had not become sustainable over the long term, while thanking users, developers and teams who helped give Blast its moment, even though the project ran for a shorter period than he had hoped.

The warning signs appeared earlier. BeInCrypto flagged the strain when Blast posted negative revenue in March, and the project had previously raised $20 million from investors. DefiLlama data shows value locked on Blast has fallen to $32.3 million from its 2024 peak, a decline of nearly 99%.

The exit path is slow and time-bound

About $51 million bridged from Ethereum remains in Blast contracts, according to L2BEAT, a site that rates network safety. Most of that total, $46.6 million, is staked ETH held with Lido, an interest service.

The Lido position explains why withdrawals do not happen immediately. Blast must first withdraw the funds from Lido, a process that takes about a week. Once that step is complete, the waiting period for users falls from seven days to 24 hours.

The normal Blast application remains available until October 26. After that date, users will need to interact directly with Blast contracts on Ethereum.

Safety limits remain under the contracts

L2BEAT lists five keyholders as controllers of those contracts. Any three keyholders can change the contracts instantly or pause withdrawals. The risk summary flags the design as a potential problem, but it does not allege that the keys have been misused.

Blast’s fraud-proof mechanism, which is meant to let anyone challenge a false record, also did not reach full functionality. L2BEAT quotes a warning that a malicious proposer can finalize an invalid state, which can cause loss of funds.

The closure extends a 2026 trend

Blast now follows a sequence of 2026 shutdowns, including Lisk’s blockchain closure and the Bitcoin Layer 2 network Botanix. The network’s deposits arrived within weeks of launch, yet two years later it is earning only $110 a day.