Cross-chain infrastructure Router Protocol announced its closure and will destroy 303 million ROUTE tokens

Router Protocol, a cross-chain infrastructure project supported by Coinbase Ventures, announced that it will cease all operations by September 30 and plans to permanently destroy 303,333,198 ROUTE tokens held in its treasury, accounting for about 30% of the total supply of nearly 1 billion tokens. The team released a statement on X, stating that over the past year, they attempted commercialization, licensing, and acquisition negotiations, but failed to achieve sustainable operational results.

Router identified the flow of funds from the cryptocurrency sector to artificial intelligence and the decline in cross-chain asset transfer fees as core challenges facing its operations. As activities concentrated on fewer networks and standardized infrastructure, the demand for its services has decreased. The team noted that bridging economic profits are thin, fees have been compressed, and costs have never stopped. As part of the closure, Router will negotiate with centralized exchanges to stop supporting ROUTE tokens, and the delisting arrangements and withdrawal processes may vary across exchanges.

Router raised $4.1 million from investors including Coinbase Ventures and Polygon in 2021 and launched the proof-of-stake Layer 1 blockchain Router Chain in July 2024, but it was shut down in September 2025 due to infrastructure costs, validator expansion, and security risks. The team also disclosed two security incidents in 2025: in February, approximately 80% of the value was recovered through negotiations after a vulnerability incident, while losses from a chain-level vulnerability in July could not be recovered.