ChainCatcher report: DAO infrastructure provider Syndicate has announced it will gradually shut down operations. The company stated that, after five years of building on-chain developer infrastructure, the Rollup market has undergone fundamental changes. The current Rollup market has significantly contracted, with some Rollup projects gradually closing, and the market has shifted from EVM Rollups to custom chains built from scratch by consulting teams, resulting in a notable decline in reusable technology and network value. Syndicate noted that its structure consists of two parts: Syndicate Labs, responsible for development, will be shut down, while the independent entity Syndicate Network Collective (a Wyoming DUNA), which holds SYND tokens and governance rights, will continue to operate, with SYND governance unaffected in the short term. Additionally, Syndicate emphasized that this decision to cease operations is unrelated to recent cross-chain security incidents. Affected users and SYND holders have been fully compensated from treasury reserves, and team and investor tokens remain locked.
Syndicate Announces Gradual Shutdown, SYND Governance Unaffected
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Summary
Syndicate, a DAO infrastructure provider, announced a phased shutdown, citing a transformed Rollup market and decreased demand for EVM-based solutions. Syndicate Labs will cease operations, while the Wyoming DUNA entity, Syndicate Network Collective, will retain control of SYND governance and token holdings. The decision is unrelated to recent cross-chain security issues, and users have been compensated from the treasury. On-chain news underscores ongoing shifts in market dynamics within the crypto sector.
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