Polychain-Backed Botanix Will Shut Down Bitcoin Layer 2, Users Urged to Withdraw by July 9

Botanix Labs has announced it will wind down its Bitcoin Layer 2 network, telling users to withdraw remaining assets. Multiple reports say the company warned users to move funds off the network by July 9 ^{[1] [2]}.

According to coverage of the shutdown, Botanix said it could not sustain operations economically, citing insufficient user demand and fee revenue that fell below infrastructure costs. Reports also note the network launched roughly within the past four years and recorded activity including 25 million transactions and 200,000 wallets during its mainnet period ^{[3] [4]}.

The shutdown underscores the difficulty of maintaining Bitcoin Layer 2 economics without adequate incentives and consistent demand, as Botanix cited low revenue relative to costs and advised users to withdraw assets before operations wind down ^{[2] [4]}.