Polygon has officially discontinued operations of its zkEVM Layer 2 scaling chain following sustained annual losses surpassing $1 million. The decision stems from persistently low adoption and technical integration challenges with Ethereum’s proto-danksharding technology.
The project will reallocate resources to accelerate development of AggLayer, its unified modular infrastructure aimed at enhancing scalability and operational efficiency for decentralized finance (DeFi) applications. This strategic pivot reflects Polygon’s focus on sustainable growth amid evolving blockchain demands.
CEO Marc Boiron acknowledged the difficulty of halting zkEVM operations but emphasized the company’s commitment to prioritizing impactful innovation. The transition aligns with market shifts toward scalable multi-chain frameworks that streamline developer workflows.
While Ethereum’s mainnet remains unaffected, the discontinuation impacts niche DeFi projects built specifically on zkEVM. Polygon’s native governance tokens exhibited price volatility following the announcement, reflecting market adjustments to the strategic realignment.
AggLayer is positioned to significantly improve DeFi transaction processing speeds and interoperability across protocols. The infrastructure promises reduced operational friction for developers, potentially catalyzing broader adoption within the blockchain ecosystem.