Cross-Chain Infrastructure Router Protocol Announces Closure, Will Burn 303M ROUTE Tokens

ChainCatcher reports that Router Protocol, a cross-chain infrastructure project backed by Coinbase Ventures, has announced the cessation of all operations by September 30 and plans to permanently burn 303,333,198 ROUTE tokens held in its treasury—approximately 30% of the token’s total supply of nearly one billion. The team posted a statement on X, stating that over the past year, efforts to pursue commercialization, licensing, and acquisition negotiations failed to yield a sustainable operational model. The team cited the shift of capital from crypto to artificial intelligence and declining fees for cross-chain asset transfers as core challenges to its operations. Demand for its services has diminished as activity has consolidated around fewer networks and standardized infrastructure. The team noted that the bridge economy offers thin profit margins, with fees compressed while costs have never ceased. As part of the shutdown, Router will negotiate with centralized exchanges to cease support for the ROUTE token; delisting schedules and withdrawal procedures may vary by exchange. Router raised $4.1 million in funding in 2021 from investors including Coinbase Ventures and Polygon, and launched its proof-of-stake Layer 1 blockchain, Router Chain, in July 2024—but shut it down in September 2025 due to infrastructure costs, validator bloat, and security risks. The team also disclosed two security incidents in 2025: approximately 80% of funds lost in a February vulnerability were recovered through negotiation, while losses from a July chain-level vulnerability could not be recovered.