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Botanix is closing its Bitcoin Layer 2 network after four years of operation, pointing to insufficient fee revenue as the reason for the wind-down.
The project is urging users to withdraw their assets from the protocol before July 9.
A Fee Model That Couldn't Sustain Itself Bitcoin Layer 2 networks sit on top of the $BTC base chain, routing transactions through a secondary settlement layer in an effort to unlock faster or cheaper activity.
The economic logic depends on capturing enough transaction fees to sustain operations — a model that has proven difficult to validate in practice. Botanix's announcement cuts to that structural problem directly.
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