MilkyWay bows out after final allocation: Less than a year from launch to closure, the final farewell of 92,708 USDC

The DeFi project MilkyWay has completed the final protocol yield distribution to the community. According to the latest news, a total of 92,708 USDC has been distributed in this allocation, funds derived from fees collected by the project in the form of TIA, INIT, and BABY tokens. The distribution was based on the final protocol snapshot, and eligible participants include MILK holders, MILK stakers, and liquidity providers. A minimum threshold of 1 USDC was set for each distribution; addresses with less than this amount will not receive any allocation. This marks the final stage of MilkyWay project’s operation.

From Prosperity to Curtain Call

Rapid Decline Trajectory

MilkyWay was launched on April 29, 2025, less than a year ago. According to market data, the current price of the MILK token is $0.002442, ranking 2076th by market cap. However, in terms of price performance, the project has entered a deep decline: down 61.15% in 30 days, down 25.66% in 7 days, with a market cap of only $947,284.59.

Previously, MilkyWay announced it was gradually ceasing operations and would shut down permanently. The project team stated that unmet expectations in demand and adoption of decentralized finance were core reasons, and that WayCard was launched too late to alleviate funding pressure in time, ultimately making it unsustainable.

Final Compensation

The 92,708 USDC distributed this time, though not a large amount, represents the project’s final commitment to the community. These funds come from fees collected during the project’s operation in various tokens (TIA, INIT, BABY), fairly distributed to eligible participants via protocol snapshot.

The distribution covered three groups: users holding MILK tokens, users staking MILK, and users providing liquidity for the project. The minimum threshold of 1 USDC is relatively lenient, but it also means some small holders may not receive any distribution.

Practical Insights

Challenges Faced by DeFi Projects

MilkyWay’s failure is not an isolated case. The project team admitted that “DeFi demand and adoption did not meet expectations,” reflecting the reality of the entire DeFi sector—market capacity for new projects is limited, and projects lacking differentiation struggle to survive. WayCard, as the main product, was launched too late to turn the tide at a critical moment, illustrating that timing of product release is crucial to project success or failure.

The less-than-one-year cycle from launch to shutdown indicates that MilkyWay failed to find a sustainable business model. In the fast-changing and highly competitive crypto environment, initial funding and hype are insufficient for long-term operation.

Lessons for Participants

Although the project team completed the final yield distribution, for early participants, it remains a story of loss. The value of MILK tokens has fallen over 99% since launch (based on initial prices), and the final distribution of 92,708 USDC is more of a compensation for community losses rather than real profit.

Summary

The complete shutdown and final distribution of MilkyWay serve as a reminder to market participants that success in DeFi projects requires solid products, timely market adaptation, and sustainable business logic. The less-than-one-year span from launch to closure reflects both the rapid iteration of the crypto market and the harsh reality that projects lacking competitiveness cannot survive. For investors, this is a textbook case of risk awareness— even if the project team fulfills distribution promises in the end, it does not change the overall loss outcome for participants.