The responsibility before parting: MilkyWay completes the final 92,708 USDC community distribution

MilkyWay has completed its final protocol revenue distribution to the community. This once prominent liquidity staking project in the Cosmos ecosystem, after announcing its permanent shutdown, fulfilled its last commitment with concrete actions: distributing a total of 92,708 USDC to the community. This fund was collected from protocol fees in the form of TIA, INIT, and BABY tokens. This move stands out amid the “runaway wave” of project shutdowns.

Final Distribution Details

MilkyWay’s distribution covered three types of community participants:

According to the latest information, the distribution ratio is approximately 0.0005074 USDC per 1 MILK. A minimum threshold of 1 USDC was set; addresses below this amount are ineligible for distribution. On-chain wallets received funds directly, while exchange users received their share from their respective platforms.

From Prosperity to Curtain Call

MilkyWay’s shutdown was not a sudden decision. According to related reports, the project team had previously announced plans to gradually cease operations and close permanently. The reason for shutdown was straightforward: the DeFi demand and adoption within the Celestia ecosystem did not meet expectations, and the late launch of WayCard failed to alleviate funding pressures in time.

This reflects a broader ecosystem dilemma. Market observations indicate a recent wave of project closures in the Cosmos ecosystem—Noble moved to the EVM ecosystem seeking opportunities, Bitway shifted to BSC, Mars Protocol shut down, and Dropdotmoney couldn’t even distribute tokens. Being able to distribute 92,708 USDC at shutdown already shows a degree of responsibility on the part of MilkyWay.

Looking at token performance, MILK experienced significant volatility in recent days. In the days following the shutdown announcement, MILK continued to decline, dropping over 7% from a brief rally on January 20 to subsequent continuous declines. This is the market’s honest reaction to the project’s end.

A Thought-Provoking Comparison

MilkyWay’s complete liquidation process is noteworthy. After deciding to shut down, the project team did not simply close the protocol but:

• Swapped accumulated fees into stablecoins
• Set clear distribution rules and a minimum threshold
• Ensured all eligible participants received their share
• Completed distributions on time

While this process cannot undo the project’s failure, it at least demonstrates a basic respect for the community. In a context where some projects choose to run away and others can’t even distribute tokens, such an approach is particularly valuable.

Summary

MilkyWay’s final distribution marks the official curtain call for this Cosmos ecosystem project. The 92,708 USDC, though not a large sum, represents the project’s responsible handling of community assets at the end—rather than abandoning them. This is rare in the current ecosystem environment.

More worth reflecting on is the underlying ecosystem dilemma reflected by this distribution—insufficient DeFi demand and widespread project closures. This is not only a problem for MilkyWay but a challenge the entire ecosystem must face. For projects and investors still active within this ecosystem, it serves as a warning: having technology and vision alone is not enough; genuine ecosystem demand and market adoption are the foundations for long-term survival.