PANews reported on May 21 that Syndicate announced on the X platform that Syndicate Labs is gradually shutting down. After five years of building on-chain developer infrastructure, the team made this necessary decision due to a fundamental shift in the Rollup market. Syndicate stated that the Rollup market has shrunk significantly, with more Rollups quietly closing for every new one added, and the market has drifted away from their technological direction; EVM Rollups are no longer the standard.

Syndicate consists of two entities: the development company Syndicate Labs and the Syndicate Network Collective, which holds governance rights over the SYND token. The latter is independent of Syndicate Labs, therefore SYND governance will not be immediately affected. The team clarified that the shutdown decision is unrelated to the recent cross-chain bridge attack, and affected clients and all SYND holders on Commons Chain have received full compensation from treasury reserves. Team members and investors remain under lock-up, and no related individuals have been able to unlock their allocations early. All code is open source and permanently available.