DMail Network to close the decentralized e-mail service
Decentralized email platform DMail Network is shutting down after five years of operations, citing high infrastructure costs, poor monetization, failed funding efforts and limited token service.
The platform said it will phase out all services starting May 15 and urged users to export their data before then. All nodes will be shut down after that date, making emails and accounts inaccessible, he said.
Dmail Network describes itself as a Web3 communication platform focused on decentralized, wallet-based email, encrypted messaging and onchain notifications. In January 2025, Dapradar placed Dmail in second place among AI DApps, with 4.9 million unique active wallets for the month.
DMail's shutdown combined with high operating costs, poor monetization, and unsuccessful fundraising suggests that user activity alone is not enough to sustain the infrastructure-heavy Web3 product.
Dimmel points to expenses, failed fundraising and poor token usage
Dimmel says the economics of running a decentralized communications platform are becoming increasingly difficult to sustain. The company said in a closing note that bandwidth, storage and computing costs took up the bulk of the budget, with costs increasing as users grew.
The company said it explored different paid models and monetization methods, but didn't find a business model users were willing to support at scale.
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Dimmel said worsening market conditions added to the pressure. The group says several financing rounds have failed, acquisition efforts have failed and funding is drying up. Attrition among key employees has left the group unable to maintain its infrastructure, he said.
He added that the project's prototype did not develop a clear broad use case and the economic design failed to create a self-sustaining cycle. Following the announcement, the DMail Network token dropped to $0.0002067, according to CoinGecko.
Dimmel joins the growing list of Web3 shutdowns.
DeMel's closure comes amid a recent wave of shutdowns at Web3 as projects struggle with weak demand and funding pressures.
On March 18, DAO tool platform Tally said it was shutting down after concluding there was no viable market for its products. On March 24, development company Balancer Labs said it was shutting down four months after an exploit that cost more than $100 million.
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