Nearly $10M on Silicon layer-2 must be withdrawn by Dec. 31

Silicon Network stopped accepting new deposits and began a shutdown process on Sept. 2, giving users until Dec. 31 to withdraw roughly $9.75 million in assets held on the chain. The network and its block explorer will be decommissioned after the deadline, and any funds remaining on the chain will be unrecoverable.

On‑chain balances show about $9.75 million remains on Silicon. The largest holdings are approximately $2.66 million in USDC, $2.54 million in wrapped bitcoin (WBTC), $2.08 million in ether (ETH) and $1.85 million in USDT. How easily assets can leave Silicon depends on how they were issued.

Tokens that were bridged from Ethereum have a direct path back to the mainnet. External‑wallet users must initiate a withdrawal, hold enough ETH to pay finalization gas and complete the on‑chain steps before Dec. 31. Tokens that were issued directly on Silicon do not have a native bridge. Those assets rely on available liquidity inside the shutting network to be swapped or withdrawn.

Silicon warned that liquidity is expected to decline as user activity falls, which could make swaps or withdrawals difficult or impossible for tokens issued on the chain. In a notice to users, the network warned: “This network is a non-custodial service, meaning that the custody and withdrawal of assets are managed directly by each user. Once the service has been terminated, assets that have not been withdrawn cannot be recovered.” The notice added: “Whether and how to handle these tokens is a decision to be made at the user’s own discretion and responsibility. Once the network has been fully terminated, recovery will not be possible.”

Silicon was built using Polygon CDK, connected to Agglayer and closely integrated with Korbit, a South Korean crypto exchange. Korbit’s Web3 Wallet, which operated on Silicon to give exchange customers access to decentralized applications, is being discontinued less than two years after launch. This leaves users who accessed Silicon through the exchange with additional urgency to move funds.

The shutdown follows a period of consolidation in the market for Ethereum layer‑2 networks. Tracking data show Coinbase‑backed Base and Arbitrum together hold about $24.7 billion, roughly 80% of the approximately $30.5 billion tracked across Ethereum layer‑2s. Silicon has not attributed its shutdown to those figures.

The network’s withdrawal window runs through Dec. 31. After that date, the explorer and the chain will be taken offline and any remaining on‑chain assets will be unreachable. Users holding assets on Silicon should initiate and finalize withdrawals from their wallets and ensure they have sufficient ETH for gas before the deadline.