Botanix shuts down when demand for Bitcoin Defi falls short
Botanix, a Bitcoin scaling network designed to bring “real utility” to BTC without token incentives, is winding down after four years of work.
In a post on X on Tuesday, Botanics told users to withdraw all bitcoins and other assets by July 9, after which the remaining assets would be wiped and “irreversible.”
The decision comes despite deals with major crypto infrastructure providers including Chainlink, FireBlocks and Galaxy, and the launch of consumer-facing Bitcoin app Neobank.
Botanix's Spiderchain architecture combines Ethereum's virtual machine-compatible blockchain with proof-of-stake-style communication.
That structure allowed Bitcoin to offer an Ethereum-like program, relying not only on Bitcoin's consensus for security and settlement, but also on a pool of validators and a dynamic federation.
In its closing announcement, the group said the technology and products worked but failed to achieve sustainable product market fit or economics.
Botanix Closing Notice. Source: Botanix
Botanix says most users still use Bitcoin primarily as a reserve asset and a vehicle rather than something they want to use frequently in onchain applications, and current demand for Bitcoin-backed decentralized finance (DeFi) is mostly being met by BTC wrapped around Ethereum.
Related: Bitcoin Payments Held by Tax Policy, Not Processing Technology: Crypto exec
The group also cited a broader focus and trading volume on large exchanges, trading platforms and traditional financial intermediaries, suggesting that infrastructure-heavy networks like Botanics are struggling to generate enough fee revenue to cover their costs.
Users have until July 9 to withdraw assets.
Botanix warned on July 9 that anyone who doesn't remove their bitcoins and other assets will lose access, highlighting the practical risks for retail users when experimental DeFi platforms fail.
The shutdown comes as other projects, including Stack and Rootstock, which run free blockchains linked to Bitcoin, and new efforts like Citrea seek to extend Bitcoin's programming, including a variety of Bitcoin anchors, stake-style designs and token incentives.
Citrea co-founder and CEO Orkun Mahir Kilichi told Cointelegraph Botanix's experience is less of a case of Bitcoin DeFi than a “cloning-first approach” that replicates existing EVM protocols without offering a distinct value proposition to long-term BTC holders.
He argued that Citrea is instead focused on applications that “basically require Bitcoin specific architecture and trust-reduced settlement,” instead of competing as a more general purpose chain, suggesting the use of general lending and trading forks instead of private payments and Bitcoin-native capital markets.
Cointelegraph reached out to Botanix for comment but did not receive a response by press time.
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