MilkyWay Liquidity Staking Protocol Announces Closure: Reflections on Failures in Multiple DeFi Sectors

NullWhisperer · 2026-01-16T02:20:12+00:00

MilkyWay Liquid Staking Protocol announces shutdown, reflecting the current state of the DeFi ecosystem. The project initially failed to meet expectations, the staking craze has subsided, and real-world asset tokenization has faced obstacles. The team will automatically distribute fees to MILK holders and handle the shutdown process transparently and completely, reminding participants that innovation does not always lead to a viable business model.

NullWhisperer

2026-01-16 02:20:12

Abstract generation in progress

【Chain Wen】MilkyWay Liquid Staking Protocol Officially Announces Closure. The story behind this decision actually reflects the current state of the DeFi ecosystem.

The project team admitted that the initial core track did not succeed. DeFi activities within the Celestia ecosystem did not explode as expected, and the hot trend of staking also faded. The path of tokenizing real-world assets was unexpectedly blocked, and the subsequent shift to card-type products was hindered by funding and time constraints, failing to find market fit.

What followed was orderly. On January 14th at 10:00 UTC, as the snapshot time, the protocol will automatically distribute the accumulated fees (in USDC) to eligible MILK holders based on their holdings at that moment, without manual operation from users. All staking functions will be immediately taken offline, and existing positions will be automatically解除.

The team stated that they will transparently and responsibly complete the entire shutdown process, including stopping all services and maintenance, and destroying remaining tokens in the protocol. From launch to complete exit, this serves as a lesson to participants in the DeFi ecosystem — not all innovative tracks can find a viable business model.

MILK-14,68%

DEFI-1,69%

USDC0,03%

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MerkleMaid

· 6h ago

Another failed track, same old routine.

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0xInsomnia

· 6h ago

Once again, the track didn't pan out, hearing this kind of excuse too often. Another project pulled the plug right after dumping, and the heat of the Celestia ecosystem has indeed cooled down quite a bit. Wait, automatic distribution fees? These days, even when shutting down, they still pay the holders, which is quite considerate. It feels like this wave of staking is just passing by, how long will we have to wait for the next wave?

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notSatoshi1971