Gitcoin-Backed Layer 2 Chain PGN Says It's Shutting Down
PGN wanted to direct transaction fees towards supporting public goods.
By: Camila Russo • Loading...News Chain
The Public Goods Network (PGN), an Ethereum Layer 2 blockchain backed by Gitcoin, is set to cease operations by June.
PGN emerged six months ago with the bold mission to leverage blockchain technology to fund public goods. However, financial projections did not materialize and its technological challenges were ultimately impossible to overcome, Gitcoin executive director Kyle Weiss said in a Jan. 17 post.
PGN, which L2Beat shows has $1.46 million of total-value locked, aimed to direct transaction fees towards supporting projects beneficial to the public. The network's unique proposition, Contract Secured Revenue (CSR), was designed to attract smart contract deployments and generate support for public goods, but that technology proved to be unviable.
Lack of Token
The network faced other significant challenges, including low liquidity on bridges, absence of critical decentralized exchange infrastructures, and the community's reluctance to migrate without the assurance of a fully scaled network.
Finally, the lack of a future token limited traffic compared with other Ethereum-based chains, which were able to attract users with the promise of a potential airdrop, Weiss said.
As PGN prepares for its sunset phase, the focus shifts to ensuring a smooth transition. The network plans to disable new bridging activities while encouraging users to transfer their assets off PGN. Detailed documentation and support channels are being established to guide the community through this process.
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