PryzmPrice

(PRYZM)

The development team, Refracted Labs, officially announced the closure of the Pryzm Layer-1 mainnet due to an unsustainable economic model. While the network introduced innovative yield-trading technology, it was unable to maintain the long-term financial viability required for a standalone ecosystem. Consequently, the team is transitioning its efforts toward the Ethereum DeFi landscape to leverage a different infrastructure for their future financial products.

To initiate redemptions, users must first merge their Yield Tokens (YT) and Principal Tokens (PT) back into Collateral Tokens (CT) using the official project dashboard. This process must be completed before the validator set is officially dissolved. Once merged, assets can be bridged or withdrawn to ensure users retain their underlying collateral before the network becomes fully inactive. Users are urged to act quickly to avoid complications during the final validator dissolution.

The team has introduced a burn mechanism for native PRYZM tokens. Holders are encouraged to burn their existing tokens in exchange for future allocations in upcoming Ethereum-based DeFi projects being developed by Refracted Labs. This migration path is intended to provide a transition for the community as the project moves away from its original Layer-1 blockchain structure and toward a new ecosystem.

Pryzm’s primary innovation involved splitting a yield-bearing asset into two distinct components: Principal Tokens (PT) and Yield Tokens (YT). PT represented the underlying principal amount, which could be redeemed for the asset later, while YT represented the right to all future yield generated by that asset. This allowed users to trade or hedge their future yield and principal separately. To exit the system now, these two components must be recombined.

The StakeDrop campaign previously rewarded users who staked assets with Pryzm validators, and Photons were points earned by early testnet participants. With the network shutting down, the team has indicated that these points and rewards may be factored into the compensation or allocation structure for their new Ethereum-based initiatives. Users should monitor official project updates to see how these legacy rewards will convert during the migration to the new platform.

PulseTrade was a built-in tool designed for automated trading, allowing users to execute gradual purchases to smooth out volatility. Liquid Governance allowed users to trade the voting power of staked assets independently of the assets themselves. Unlike other yield-trading protocols that operate as applications on existing chains, Pryzm was built as a dedicated Layer-1 blockchain to support these complex financial features natively within its own ecosystem.