Syndicate

The infrastructure to infinitely scale Ethereum: build customized, programmable, decentralized rollups and sequencers. A community-owned internet starts here.

[Syndicate @syndicateio]

Syndicate Labs is winding down.

After five years building onchain developer infrastructure, the rollup market has fundamentally shifted, making this decision necessary.

Here's what this means for the network, token holders, and developers building with Syndicate.

[Syndicate @syndicateio]

Our code is open source, permanently available, and open to contributors. This is true regardless of what happens with Syndicate Labs or the Syndicate Network Collective.

Our work is there for any developer who wants to carry it forward.

[Syndicate @syndicateio]

Team members and investors remain locked, with no affiliated individual able to access their allocations. We structured our vesting to align with long-term incentives, and no team member or investor has received any short-term benefit.

[Syndicate @syndicateio]

To every developer who shipped with our tools and every community member who contributed to the network: thank you.

If you are interested in becoming a maintainer of the network, please DM us.

[Syndicate @syndicateio]

A few clarifications worth making directly. The decision to wind down was not influenced by the recent bridge compromise, and the two are unrelated.

The affected customer and all SYND holders on Commons Chain have been made whole. Reimbursement was funded by treasury reserves set aside for this kind of scenario, and is not the reason for the wind down.

[Syndicate @syndicateio]

The Syndicate Network Collective is independent from Syndicate Labs, so SYND governance is not immediately affected. A successor could preserve the DUNA. Without one, we have a plan for an orderly wind down.

[Syndicate @syndicateio]

Syndicate is more than Syndicate Labs. Here's what stays.

Syndicate has two entities.

Syndicate Labs, the development company, and the Syndicate Network Collective, a separate Wyoming DUNA that holds SYND tokens with governance power.

[Syndicate @syndicateio]

We've spent half a decade seeking to make this ecosystem successful. We sincerely wish that we had a different outcome, and have dedicated ourselves for years to helping onchain applications succeed.

We wish as much as everyone else that a different result were possible.

[Syndicate @syndicateio]

The market has shifted away from our technology, making it impossible to wait out these market conditions. EVM rollups are no longer the standard.

Instead, custom chains are being built by consulting teams from scratch, with very little reusable tech or network value.

[Syndicate @syndicateio]

Syndicate has always focused on giving developers the customization and control to bring any app onchain, at scale.

Unfortunately, the rollup market has shrunk dramatically. For every new rollup spinning up, several more are quietly shutting down.

[Syndicate @syndicateio]

Syndicate Labs is winding down.

After five years building onchain developer infrastructure, the rollup market has fundamentally shifted, making this decision necessary.

Here's what this means for the network, token holders, and developers building with Syndicate.

[Syndicate @syndicateio]

Not every part of a system needs to be onchain. The trust boundaries that need to be verifiable do, and Stylus by @Arbitrum made that practical for SyndDB.

[Arbitrum @arbitrum]

The Arbitrum Platform is built for businesses that need more than standard smart contracts.

Syndicate used Stylus to keep high-throughput infrastructure offchain while making critical trust boundaries verifiable onchain through SyndDB.

[Syndicate @syndicateio]

@anroge_roge DM’d! We can confirm that we see the tokens in your wallet

[Syndicate @syndicateio]

An update on the Syndicate bridge compromise: All impacted SYND holders on Commons Chain have been reimbursed in full plus an additional 15% of the total amount lost.

These reimbursements have been sent directly to affected wallets on Base, with gas covered by Syndicate Labs. There is no claim portal and you do not need to take action to receive your reimbursement. (It is already transferred)

This entire reimbursement totals to 12,901,167.031748179832163173 SYND

The reimbursement proof can be viewed at this contract address: https://t.co/O6xEhAJA0a

[Syndicate @syndicateio]

@bparlan @zebastieneth The bridge was compromised but the token itself is safe. We updated our bridge portal to disable bridging options outside of Base and ETH Mainnet. Stick to those networks, don’t bridge to Commons since it’s compromised (which is what your screenshot shows)

[Syndicate @syndicateio]

@rightbrain23 This has been automatically processed as part of the refunds. Staking balances were taken into account

[Syndicate @syndicateio]

@anroge_roge If you were a Commons user or staker, they should be in your wallet already. If you DM your address, our team can check for you

[Syndicate @syndicateio]

100% of affected holders and customers are now made whole after our bridge compromise. With this reimbursement, all impacted SYND holders have been made whole. One week ago, all impacted customers were made whole.

Syndicate Labs chose not to reimburse its own affected holdings, reducing the required reimbursement by ~5.5M SYND.

Syndicate Labs has used its own treasury to facilitate recovery for all parties. Our treasury management practices have always planned for these worst case scenarios, allowing us to use our funds to help everyone recover their tokens.

All affected SYND holders have come away from this incident with more tokens than they started with, and there has been no increase to total supply because of the token burn that Syndicate Labs volunteered from its treasury.

[Syndicate @syndicateio]

Additionally, as part of the response to the Syndicate bridge compromise, Syndicate Labs has also opted to burn an equal amount of SYND (the total reimbursed amount) from its treasury allocation to offset any long term impact on the circulating supply.

This entire burn totals to 12,901,167.031748179832163173 SYND. This is identical to the reimbursement amount.

The burn proof can be viewed at this transaction hash: https://t.co/2C0TJImBOh

[Syndicate @syndicateio]

We are running a simulation of our Commons balance distribution tooling on Base Sepolia

If all completes as expected, we will soon run our SYND distribution on Base

There is no claim portal. All SYND will be directly sent to impacted wallets. There will be a view-only inspector

[Syndicate @syndicateio]

We have validated all holder and staker balances on Commons. We are importing them into our tool to send these balances to the corresponding addresses on Base. Before sending, we will perform further validation and simulations.

We will have updates soon as this work continues

[Syndicate @syndicateio]

An update on the Syndicate bridge compromise: Making users and customers whole is progressing quickly.

The affected customer has been made whole.

Making SYND holders on Commons whole is underway. Pre-compromise SYND balances on Commons have been snapshotted. We are double-checking these scripts prior to initiating transfers on Base.

Our intention is that customers and users will be made whole 1:1 (or better) based on the original tokens taken. This is already complete for the affected customer. We will share updates for Commons SYND holders soon on the recovery details and bonuses.