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Onyx Protocol will discontinue Layer 3 by the end of 2026 and fully shift to Layer 1 development.
Shenchao TechFlow News — On July 02, Onyx Protocol announced that Onyx Layer 3 (XCN Ledger) will officially stop service on December 31, 2026, and all subsequent development resources will fully shift to Onyx Layer 1. The official statement says that XCN will keep its Ethereum-native ERC-20 asset characteristics unchanged. The XCN contract on Ethereum will continue to serve as the primary asset vehicle in the ecosystem for liquidity, governance, and staking. Going forward, users will still be able to bridge XCN on Ethereum to Onyx Layer 1 as needed to participate in staking, applications, and subsequent network functions.
This adjustment is intended to concentrate engineering resources on a single network, promote protocol development, enhance validator participation, simplify the developer experience, and unify ecosystem liquidity. Onyx Protocol said that with the launch of Onyx Layer 1 and the decentralized banking network Onyx Mesh developed in collaboration with Chain, the existing infrastructure can now support both decentralized applications and institutional-grade financial systems at the same time.