Project Suspension Reflection: Why Does DeFi Adoption Remain Stuck Behind MilkyWay's Closure

ZkSnarker · 2026-01-15T12:04:23+00:00

MilkyWay Protocol announces it will cease operations, primarily due to market demand for DeFi being below expectations and delays in product launch. The protocol's revenue comes from liquidity staking, and during the shutdown process, earned fees will be returned to holders, emphasizing that market demand is key to the project's operation.

ZkSnarker

2026-01-15 12:04:23

Abstract generation in progress

【Blockchain Rhythm】In mid-January, MilkyWay Protocol announced that it would gradually cease all operations and shut down permanently. This protocol, which once focused on the DeFi sector, provided an honest reason: the market’s actual demand for decentralized finance has far from met expectations, and the WayCard product was launched too late to alleviate the pressure on funding in a timely manner.

From the revenue structure, MilkyWay mainly earns fees from liquidity staking activities, with the protocol taking 10% as operational income. During the shutdown process, the team decided to return this earned protocol fee to eligible MILK token holders who meet the snapshot conditions, in the form of USDC, proportionally.

This case once again reminds us: even DeFi projects with many innovative mechanisms often face a bottleneck not in technology itself, but in whether market demand can support the project’s long-term operation. MilkyWay’s adjustment strategy remains relatively restrained — at least promising a compensation plan for token holders.

MILK-7,72%

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ForeverBuyingDips

· 6h ago

Another one has collapsed, it's really upsetting... Saying there's insufficient demand, but isn't it just because you didn't follow through? Old comrades are like this too. Projects they believe in always die in the most unexpected places. Finally, there's still some conscience in withdrawing USDC, better than those who run away. This time, another wave of people will be trapped... The excuse of market demand is getting really tired to hear.

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FlatTax

· 01-15 16:33

Another one has died. To be honest, no matter how advanced the technology is, without users it's all pointless. MilkyWay is a typical example; it's been obvious for a while that the DeFi market isn't as big as people imagine. Honestly, refunding fees isn't bad; at least it's not a direct rug pull, which shows more integrity than some projects. The real problem isn't on the chain; it's that no one wants to use it. Where's the actual demand? This time, we need to learn our lesson again. Is just innovating mechanisms enough? First, think clearly about who will pay.

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PretendingSerious

· 01-15 12:34

To be honest, the DeFi circle is like this—being technically impressive doesn't mean people will use it. MilkyWay is quite honest; at least they are willing to refund the fees. It's also a demand issue; it seems like 90% of DeFi projects die here. WayCard launching too late is a bit ridiculous; it feels like the team was also a bit slow to react. Wait, did they really refund everything in full? Or are there some conditions involved? I've said it before, liquidity staking is too competitive; we simply can't compete with Lido.

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NotFinancialAdvice

· 01-15 12:31

Another dead project. Are they still honest about it this time? After all that, it’s still the same old excuse of lacking market demand. Real demand, haha. All tokens lack real demand, okay? Some just last a bit longer. I just want to ask those MILK holders, how do you feel right now? Returning USDC sounds good, but who cares... The DeFi sector has been overextended for a long time. All those innovative mechanisms are just empty talk. In the end, it still comes down to whether they can scam new investors.

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AirdropLicker

· 01-15 12:20

Another DeFi project has collapsed. It's really ironic to say the least. Basically, no one used it. No matter how fancy the technology was, it was all in vain. Real demand might just be a false proposition. When the market is good, anyone can survive; when the market is bad, the true nature is revealed. However, at least this team is still returning USDC, which shows some conscience—much better than some that just run away directly.

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