Woofun AI reports that Lisk will cease blockchain operations on October 31, 2026, redirecting resources toward business finance software after a decade in the crypto sector. This strategic exit marks a definitive end to the network's role as a foundational infrastructure layer.

The restructuring mandates a 25% reduction in total supply, burning 100 million LSK from treasury allocations to cap the maximum at 300 million tokens, down from 400 million. This eliminates tokens previously scheduled for future vesting. Originally a Layer-1 chain, Lisk shifted to an Ethereum Layer-2 model in 2023 but now prioritizes stablecoins, payments, and financial operations.

Woofun AI data shows the proposal was announced on August 25, 2026.

While the LSK token contract and ticker remain unchanged for Ethereum and exchange holders, Base is expected to become the primary network alongside Ethereum. The token will assume a loyalty role within the new business platform.

However, users holding LSK directly on Lisk Chain must bridge assets to Ethereum before the October 31 deadline. The bridging process requires at least seven days, with stakers facing a three-day waiting period after unstaking. Emergency unlocking penalties are removed, though a three-day wait remains for fund availability.

The Lisk DAO will dissolve, winding down governance contracts and the forum that previously controlled treasury allocations and project decisions. Approximately 47 million LSK will transfer from the DAO treasury to Lisk Ltd. The company argues that maintaining an independent blockchain became unjustifiable after years of ecosystem development. The Layer-2 strategy failed to generate sufficient revenue to sustain the incentive cycle, while token-based incentives exacerbated selling pressure.

Holders must act before October 31 to migrate assets, as Lisk transitions fully into a business platform. The dissolution of the DAO ends a decade of decentralized governance for the project.