Sunset Notice

Date: August 07, 2025

Dear Spectrum Finance users,

By this notice, we, the Spectrum Labs team, officially notify you of the decision to close the project and discontinue any project-related work. After careful consideration we have calculated that the project, unfortunately, does not hold any commercial potential in the near or distant future, and any continued work on it will simply be a waste of time, effort, and resources of everyone involved. We do not want to give any of you any false hopes while burning through the budget collected during the raise. While initially we ourselves hoped that the project would come to fruition, now there is a clear understanding that its development and further support became commercially unviable.

We truly value the support from our community throughout this journey.

Back in April 2022, when we initiated the Spectrum Network, the cross-chain market was just emerging. It was overcrowded with centralized bridges, we recognized their inefficiencies and decided to address interoperability in a different way. Our hypothesis was that by creating a programmable decentralized layer over all blockchains we could fully solve this problem. The solution would have allowed existing applications to migrate to our platform and access liquidity from all blockchains simultaneously.

However, several factors arose after investments had already been secured, which later compounded and made the project – at this point – economically unviable. Below, we outline the key factors and “cause-and-effect” that led to our decision to close the project.

1. Post-raise, we completed the white paper, as well as the research and development of the Ergo part and main abstractions such as the consensus protocol and other mini protocols. This was finished in Summer 2023.
2. The next step was to develop a protocol for communication with the Cardano network. However, Cardano's smart contract language, Plutus V2, lacked the functionality we needed at that time. We did as much as was technically possible at that point and waited for the release of Plutus V3, which was expected to include the required features. Meanwhile, a prolonged bear market in the crypto sector began.
3. While waiting for Plutus V3, we were in the research phase of the smart contract language move and its integration into the Spectrum Network. But we quickly realized that if things continued as is—meaning our dependency on waiting for Plutus V3—we would deplete resources without progress. The first version of the network could easily exist without a smart contract language; however, it couldn't without Cardano integration, which requires Plutus V3. Hence, we needed to assign new tasks to the team to retain key personnel, without whom further development of Spectrum Network would be impossible. At that stage, we had two options: (1) close or freeze the project immediately to avoid wasting funds, or (2) seek alternative sources of income.
4. We considered adding Ethereum and other chains to the roadmap while waiting for the Cardano smart contract language update, but decided against it to maintain focus and avoid spreading resources too thin, and also because the initial promise to the community and investors was to create the interoperability layer between Cardano and Ergo, not other chains. Other chains were more of a long-term plan. Instead, we chose to spend this time seeking profit opportunities on the Cardano market rather than burning through the project treasury (with the project frozen since the end of February 2024).
5. We chose to take on additional risk and pursue other revenue streams. Building on our existing work in DEX systems, we launched the Splash Protocol. This addressed a major issue in the Cardano ecosystem at the time by significantly speeding up trading order execution. Our team is now focused on it and still has work related to it.
6. In February 2024, Plutus V3 was released on testnet. But the language was still not mature enough to cover our needs and be used in production. At this point, we decided to freeze the project until the maturity of the Plutus language because the burn rate was still in place, and we were hardly forced to seek a business that could cover all the costs instead of using investors' money. However, by then, the cross-chain market was highly saturated with established solutions like LayerZero, Wormhole, Axelar, Across, Synapse, deBridge, and others. This saturation has made the serviceable obtainable market (SOM) for new entrants like our project far less attractive, dramatically increasing the risk of exhausting our funds without achieving success (and thus failing our investors, users, and team).
7. While this is a disappointing outcome, we're committed to doing right by our community by returning funds promptly. Based on all of the above, our team decided to wind down the project at its current stage and return all remaining funds to the community.

Project Timeline

In light of this, the official decision was made to return remaining funds from the raise on a pro rata basis, then proceed with the official project and company windup. These funds will be reimbursed to your wallet addresses used for sending us funds.

To keep everything as transparent as practically possible, below we give you a breakdown of all funds collected, spent on development, and remaining in the treasury as marked for reimbursement. The current state of the funds is what is remaining at the end of February 2024:

State of the funds

You can dispose of all project tokens remaining in circulation in any way or manner you deem fit as their holders.

Reimbursement Method

Funds will be returned pro-rata to all SPF holders depending on chain reserves. The distribution will happen on a date of snapshot that will be announced separately.

Quoting the asset of the current protocol liquidity will also be included in the payback, and the date of liquidity withdrawal will be the same as the date of the snapshot and repayment.

1. The date of the snapshot of the SPF token holders will be taken on September 20th 2025.
2. All funds will be distributed as an airdrop. No actions needed from your side besides withdrawing your tokens from smart contracts, if any.
3. The airdrop date will be announced separately near the snapshot date.

How to Prepare

In order to receive the refund, you need to hold your SPF tokens on your Ergo or Cardano wallet. However if you have SPF tokens in any smart contract (such as the liquidity pool), please withdraw them and hold them in your standard Ergo or Cardano wallet. Only balances in these wallets will be included in the reimbursement snapshot, and hence the airdrop.

Excluded Addresses from the Snapshot

For Ergo Chain

• Spectrum Labs treasury: 9erSt7duDopSLqdcPoM4kGJwUpqvPeBJfTPxrFGwy58rCAEPZHg
• Ergo Foundation treasury address and all related addresses (since the entity got tokens as an airdrop for free)
• All smart contract addresses (INCLUDING THE ADA/SPF LIQUIDITY POOL)

For Cardano Chain

• Spectrum Network vault: addr1v8njca4vkseetespu6jjtlk25sy46ya3qvrcp7n5c7zy9esj2g22a
• Spectrum Labs Treasury: addr1vy8h9l37fzdwpq8etmftagdc80trh9jjg0avt3je26szu8g820gnj
• Spectrum Network Rewards Pool: addr1vx3vcluw7qtulynhzsy4prfdmnjth8w52ejg2qeclsz7argu26gcf
• And all smart contract addresses (INCLUDING THE ADA/SPF LIQUIDITY POOL)

FAQ

Important Notes

• Until the snapshot date, users must pull out their tokens from any smart contracts such as AMM or lending pools because otherwise their tokens won't be counted.
• Be aware of scammers; use only official communication channels for any inquiries or updates.
• Official communication Channels are:
  • Email: [email protected]
  • Discord: https://discord.gg/tBtdF87BPp
  • Telegram chat: https://t.me/spectrum_labs_community
• Our team will fully focus on trading tools on Cardano moving forward.

Thank you for your understanding and support.

Sincerely yours,
Spectrum Labs Team