NFTX to Cease Protocol Support as Flayer Labs Takes Over

The NFT liquidity protocol, NFTX, has announced that following its operational shutdown by the end of this month, Flayer Labs will take over the management of its smart contracts. Flayer Labs builds infrastructure to bridge the liquidity gap between the decentralized finance (DeFi) and NFT markets.

In a tweet addressing the situation, NFTX stated that its story as a protocol does not end on January 31 after the team discontinues support for the project.

NFTX announced in late December that the user interfaces for the second and third versions (V2 and V3) of its protocol would be switched off by January 31. Although the protocols will remain active as smart contracts live forever, the original team will no longer support or manage them.

While it remains unclear if the NFTX team is completely shutting down its operations, the project has promised to continue its mission through Flayer Labs. The goal remains building radical products on-chain and pushing the boundaries of what decentralized infrastructure can enable.

Launched in September 2024, Flayer Labs is a product of a merger between NFTX and FloorDAO. The two entities combined their resources and technologies to create a new, unified protocol, Flayer, to improve liquidity for NFTs. The merger led to the migration of both the NFTX and FLOOR tokens to FLAY through the official Flayer migration portal. Following the transition, the NFTX protocol became a part of the Flayer ecosystem.

In an article about refocusing its roadmap in 2026, Flayer Labs mentioned that it had streamlined its team and reorganized into smaller, product-focused groups. This reorganization came as the team’s initial size introduced layers of friction over time.

Besides streamlining the team, Flayer Labs is also simplifying and expanding its products to solve NFT coordination problems at scale. While the initial focus was on Flayer protocol, the firm will spread its attention to NFTX V2 and V3 and launch a Minimum Viable Product (MVP) in place of the protocols this quarter. The company also intends to announce plans for the real-world assets (RWA) market in the coming weeks.

Flayer Labs will assign internal teams to each product to enable autonomous delivery at a faster rate.

“We are entering 2026 with a clearer structure and a renewed commitment to achieving product-market fit,” Flayer Labs stated.