Gitcoin-backed Public Goods Network Shutting Down Operations
Gitcoin-backed Public Goods Network (PGN), a Layer 2 solution on Ethereum, has announced that it will be winding down all operations within the next six months. The project aims to complete its shutdown by mid-2024. This decision marks a significant shift for PGN, which was initially launched as an appchain to support Gitcoin’s activities related to public goods and developer funding.
Reasons Behind the Decision
The project has cited various reasons for the decision to wind down PGN. These include difficulties in migrating users to the network and operational costs exceeding the budget. The team noted that encouraging people to migrate without a scaled network was challenging, and the resources required were beyond PGN’s budget.
About PGN
PGN was a collaborative effort between Gitcoin and Conduit, designed to provide a low-cost Layer 2 solution on Ethereum. It utilized OP Stack, a software tool developed by the creators of OP Mainnet. PGN joined a list of Layer 2 projects like Base, Zora, and BNB Chain, all based on OP Stack.
Hot Take: Public Goods Network Shuts Down Amid Challenges
The Gitcoin-backed Public Goods Network’s decision to shut down its operations within the next six months comes as a surprise. Despite its initial goal of supporting public goods and developer funding, the project faced difficulties in user migration and surpassed its operational budget. This move highlights the challenges faced by Layer 2 solutions on Ethereum and raises questions about their scalability and financial sustainability.
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