Eclipse Labs, a Layer 2 blockchain developer, announced a sweeping restructuring on Monday that includes a major leadership change and deep staff cuts as the company pivots toward building user-facing applications.
In a statement on X, Eclipse revealed that Sydney Huang, known online as 0xSydney, will take over as CEO following the voluntary departure of Vijay Chetty (Litquidity). Huang previously served as Product Lead at the company.
Today, Eclipse Labs announced team and leadership changes to align with a new direction post-TGE. Over the past months, we’ve explored opportunities for application development on the network. Going forward, we’ll prioritize building a breakout application on top of Eclipse’s L2…
— Eclipse (🐮,🌑) (@EclipseFND) August 25, 2025
At the same time, Eclipse confirmed it will reduce its workforce by 65% to “align resources with our updated strategy.” The new direction will see the company shift from its infrastructure-first focus toward building its own breakout application on top of Eclipse’s Layer 2 chain.
From Infrastructure to Applications
Eclipse Labs was founded in 2022 with the goal of combining Ethereum’s security with the speed of the Solana Virtual Machine. Its Ethereum-connected rollup launched in November 2024, positioning the project as a “Solana on Ethereum.” Until now, the company had focused primarily on developer tools and infrastructure.
Today we unveil the next step in our protocol’s journey and the evolution of the Eclipse Economy.
— Eclipse (🐮,🌑) (@EclipseFND) July 16, 2025
The Eclipse protocol token, $ES, is live. pic.twitter.com/uxD8AbEAkK
But following its token generation event (TGE) last month, which saw the launch of its native token ES on Eclipse, Ethereum, and Solana, the firm is taking a new approach. Since the TGE, ES has struggled, falling more than 65% from launch value and trading at $0.1586 as of late Monday, according to CoinGecko.
“Our mission has always been to build infrastructure that can serve real-world applications. That remains unchanged, but our focus is evolving,” Huang wrote on X. “The next chapter is about serving end users and building those applications in-house.”
What Comes Next
Despite the layoffs, Eclipse emphasized that it will continue operating and upgrading its Layer 2 chain. However, a greater share of resources will now go toward application development, with more details expected in the coming months.
Today I am stepping up as CEO of Eclipse.
— sydney (@0xSydney) August 25, 2025
Our mission has always been to build infrastructure that can serve real-world applications. That remains unchanged, but our focus is evolving. The next chapter is about serving end users and building those applications in-house. The…
The move reflects a broader industry trend of blockchain projects shifting from back-end technology toward consumer-facing products that can drive adoption. For Eclipse, the restructuring marks a difficult but decisive step to redefine its future in an increasingly competitive Layer 2 ecosystem.
