Botanix Labs is shutting down its Bitcoin Layer 2 network after nearly four years of development, saying demand for Bitcoin-native decentralized finance remained too limited to support the network's economics.
The project, which aimed to build a Bitcoin-based application layer without relying on native token incentives or inflation, is winding down operations after determining that organic transaction demand was insufficient to cover baseline infrastructure costs, it posted on X.
According to the post, the project’s Spiderchain infrastructure operated with 100% uptime and recorded zero security incidents during its year of mainnet operation. The project also built Dynafed, a dynamic federation that turned the Spiderchain from a static multisig set into a rotating decentralized system.
The team claimed its network processed 25 million transactions across 200,000 wallets during its mainnet operation, moving tens of millions of dollars in assets.
Despite these technical milestones and integrations with infrastructure providers, including Chainlink, Morpho, and OKX Wallet, the project said user activity skewed toward long-term asset storage rather than high-frequency transactions, impacting revenue generation from fees.
