Botanix, a Bitcoin scaling network that aimed to provide “real utility” for BTC without token incentives, is ending after four years of operation.
On Tuesday post on X Botanix told users to withdraw all Bitcoin and other assets by July 9, after which the remaining assets will be deleted and “will be unrecoverable.”
The decision was made despite integration with major crypto infrastructure providers including Chainlink, Fireblocks and Galaxy, as well as the launch of the consumer-facing Bitcoin neobank app.
Spiderchain architecture by Botanix connects Ethereum Virtual Machine compatible chain with proof of stake style consensus.
This structure allowed it to offer Bitcoin’s Ethereum-like programmability while relying on a set of validators and active federation, rather than solely on Bitcoin’s own consensus for security and settlement.
In the closure notice, the team said the technology and products were working, but had failed to achieve sustainable product market fit or economics.
Botanix Closing Notice. source: Botanix
Botanix said that most users still treat Bitcoin primarily as a reserve asset and profit tool, rather than something they want to apply frequently in onchain applications, and that existing demand for Bitcoin-backed decentralized finance (DeFi) is largely met by wrapped BTC on Ethereum.
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The team also cited an increased concentration of attention and trading volume on huge exchanges, trading platforms and established financial intermediaries, which resulted in infrastructure-intensive networks such as Botanix struggling to generate sufficient fee revenue to cover their costs.
Users have until July 9 to withdraw their assets
Botanix warned that anyone who does not delete their Bitcoin and other assets by July 9 will lose access, highlighting the practical risks for retail users if experimental DeFi platforms are liquidated.
The closure comes as other projects seek to expand Bitcoin’s programmability, including Stacks and Rootstock, which operate independent blockchains tied to Bitcoin, and newer projects such as Citrea, which apply various combinations of Bitcoin anchors, proof-of-stake-style designs, and token incentives
Citrea co-founder and CEO Orkun Mahir Kılıç told Cointelegraph Botanix that Cointelegraph Botanix’s experience is less an indictment of Bitcoin DeFi and more of a “cloning-based approach” that largely replicates existing EVM protocols without offering long-term BTC holders a distinct value proposition.
He argued that Citrea is instead focusing on applications that “fundamentally require Bitcoin’s specific architecture and trust-minimizing settlements” rather than competing as one general-purpose chain, pointing to apply cases such as private payments and capital markets native to Bitcoin rather than general lending and trading forks.
Cointelegraph reached out to Botanix for comment but did not receive a response via publication.
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