01 Project Conclusion: MilkyWay Protocol Announces Gradual Shutdown
On January 15, 2026, the cryptocurrency industry received disappointing news. MilkyWay Protocol, a key liquid staking and restaking protocol within the Celestia ecosystem, announced via official channels that it will gradually cease operations and permanently shut down.
Once the largest LST (Liquid Staking Token) and restaking protocol in the Celestia ecosystem, MilkyWay Protocol also achieved a successful listing on Binance Alpha, enjoying a period of significant prominence.
In their announcement, the core team admitted that the decision to shut down was primarily due to the market demand they relied on failing to materialize as expected.
Specifically, DeFi activity within the Celestia ecosystem fell short of projections, the global restaking narrative lost momentum rapidly, and later attempts to pivot to RWA (Real World Assets) and crypto card (WayCard) products were hampered by market and capital cycle constraints, preventing the formation of a sustainable business model.
02 Liquidation and Compensation: Key Steps for Holders
With the cessation of operations, MilkyWay Protocol has initiated a formal liquidation process. For holders of MILK tokens, stakers, and liquidity providers (LPs), the following key dates and arrangements are crucial:
- Snapshot Completed: On January 14, 2026, at 10:00 UTC, the protocol took a final snapshot of MILK holders, stakers, LPs, and exchange addresses across multiple chains.
- Compensation Plan: The protocol will convert all historical accumulated fee revenue (mainly from its 10% LST fee share) into USDC, which will then be automatically distributed proportionally to eligible addresses captured in the snapshot.
- No Claim Required: The team emphasized that this distribution will occur automatically, so holders do not need to take any action to claim their compensation. This reduces user friction and potential risks.
03 Market Reaction: MILK Token Price Movement on Gate
The project’s conclusion had an immediate impact on the market performance of its token, MILK. As an asset previously listed on major exchanges like Gate, its price experienced significant volatility around the time of the announcement.
According to the latest data from the Gate trading platform on January 16, 2026:
- The real-time price of the MILK/USDT trading pair was approximately 0.003366 USDT.
- Over the past 24 hours, the price ranged from a low of 0.003073 USDT to a high of 0.003973 USDT.
- The 24-hour trading volume reached about 10,433,300 MILK tokens, indicating active trading in response to the news.
Looking at its overall performance since listing, MILK’s price has fallen dramatically from its debut price of $0.2919 on Gate, resulting in a severe market cap contraction. This shutdown announcement has undoubtedly added decisive downward pressure to its already sluggish price trajectory.
04 In-Depth Analysis: Why Did the Project Come to an End?
The closure of MilkyWay Protocol was not a coincidence; it resulted from a combination of internal and external factors and offers valuable lessons for similar DeFi projects.
- Cooling of the Narrative: The protocol emerged at the intersection of modular blockchain and restaking narratives. However, DeFi development in the Celestia ecosystem did not meet the early market hype, and enthusiasm for the restaking sector faded quickly, depriving the protocol of a foundation for sustained growth.
- Product Iteration and Funding Pressure: The team specifically noted in their announcement that the launch of the WayCard (crypto card) product came too late to alleviate financial pressures. In a bear market, if innovative products cannot quickly gain market traction, they can rapidly deplete valuable operating funds.
- DeFi Market Competition and Regulatory Environment: The broader DeFi market is highly competitive, and increasing global regulatory uncertainty has made it extremely challenging for small and mid-sized protocols to achieve compliance, ensure security, and attract users, further squeezing their room for survival.
05 Lessons for Investors and the Industry
The case of MilkyWay Protocol serves as a wake-up call for cryptocurrency investors, especially those involved in DeFi.
- For Holders: The top priority is to confirm whether your assets were included in the official snapshot. After that, simply wait for the automatic USDC compensation distribution, and be wary of any scams claiming to "help you claim" your funds.
- For Industry Observers: This event underscores the high risk associated with DeFi projects that rely on a single narrative or ecosystem. When evaluating projects, investors should focus more on their ability to generate real revenue, the team’s financial sustainability, and product-market fit, rather than simply chasing the latest trends.
- Looking Ahead: While some projects may fail, innovation in the blockchain industry never stops. Lessons learned from failures will push future builders to prioritize robust economic models, diversified revenue streams, and long-term community building. Each industry shakeout may be laying the groundwork for healthier growth in the next cycle.
06 Conclusion: Moving Forward Amid Volatility
As MilkyWay Protocol officially comes to an end, its MILK token price on Gate has settled at just a few cents, serving as a market footnote to this chapter of innovation.
Its story reminds us that in the fast-paced world of crypto, while technology and narrative are important, sustainable business models and resilience are the true keys to enduring market cycles.
For all participants, the only way to thrive in this dynamic industry is to keep learning, evaluate opportunities carefully, and manage risk prudently—even as you chase the next alpha.
