Coinbase-backed Router Protocol to shut down and burn 303,333,198 ROUTE

Router Protocol, backed by Coinbase Ventures, will shut down all operations by Sept. 30. Router plans to permanently burn 303,333,198 ROUTE tokens held in its treasury. The tokens represent about 30% of the token's nearly 1 billion total supply. Router said efforts over the past year to commercialize its products, license its technology, or find an acquirer failed to sustain operations. The team said capital shifted from crypto into artificial intelligence. The team also cited lower fees for moving assets between blockchains. Router said demand for its services fell as activity concentrated on fewer networks and standardized infrastructure. Router will work with centralized exchanges to end support for ROUTE. Each exchange will likely have a separate delisting schedule and withdrawal procedure. Router said it would launch no further ROUTE-related programs. The team plans to open-source selected components of Router's technology. Router raised $4.1 million in 2021 at an undisclosed valuation from investors including Coinbase Ventures and Polygon. Router launched its Router Chain Layer 1 blockchain in July 2024. Router began winding down that blockchain in Sep. 2025 because of infrastructure costs, validator inflation, security risks, and a shift toward its Open Graph Architecture system. Router said it recovered 80% of the value from a February 2025 exploit through negotiations. Funds lost in a separate chain-level exploit in July 2025 were not recovered. Router said all protocol fees went toward ROUTE buybacks and burns instead of accumulating in a treasury reserve. Syndicate Labs and Botanix also announced closures after citing pressure on crypto infrastructure businesses.