Lisk announced on August 25 that it is shutting down its Lisk Chain L2 network and will cease operations on October 31, directing its developer community to migrate to Celo instead.
The announcement marks an unusual outcome for a failed L2: rather than leave builders stranded, Lisk has set up an optional migration path to Celo, another Ethereum L2. Celo operates in emerging markets and ranks as the top Ethereum L2 by daily active users.
Lisk, which launched as a sidechain in 2016 before rebranding as an L2 on Ethereum, has struggled to gain adoption. The network cited a shift in strategy toward becoming a "modern money operations platform" as the reason for the L2 shutdown. Celo, which operates in regions including Argentina, Brazil, Colombia, Indonesia and Nigeria, has positioned itself around financial inclusion and stablecoin payments in those markets.
Celo confirmed it is offering technical support, go-to-market assistance, marketing help and integration support to projects migrating from Lisk. The two chains have "deep mission alignment," according to Celo's statement, both targeting underbanked regions and communities.
Celo data shows the network has accumulated around 840,000 daily active users as of mid-2026, ranking it ahead of Base, Arbitrum and Optimism on that metric. The L2 has also grown its user base significantly in the jurisdictions where it operates, with established communities in each.
Network shutdowns have become routine in crypto, but developer migrations between chains typically occur without formal coordination. Lisk's decision to actively guide its builders toward a specific alternative rather than simply sunset operations differs from how L2 failures usually unfold. Builders typically must scramble to find new homes or abandon their work.
Lisk is offering developers until October 31 to migrate their contracts and state to Celo. The ease of that migration will determine whether Celo retains most of Lisk's active projects or whether builders choose to exit entirely. If most Lisk projects do not complete migration by the deadline, the number will reveal whether coordinated L2 succession reduces abandonment rates relative to unmanaged shutdowns.
