Eclipse Labs, the Layer 2 developer, made waves Monday with a leadership shake-up and major layoffs as it shifts gears toward building user-facing applications.
Leadership Change and Major Layoffs
The company announced on X that Sydney Huang, aka "0xSydney," will be stepping into the CEO role, following the voluntary exit of Vijay Chetty (better known as Litquidity). Huang, who previously served as Product Lead, takes over at a pivotal moment as the company makes significant changes.
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
As part of this restructuring, Eclipse is reducing its workforce by 65% to "align resources with our updated strategy," according to the post. It’s clear, Eclipse is making room for a new direction.
New Strategy and Focus on User-Facing Applications
Eclipse revealed its new mission: to prioritize building a breakout application on top of Eclipse's Layer 2 infrastructure. The company teased more details will follow, but the shift is clear, this is about getting closer to end users, not just developers.
The shake-up comes right after Eclipse's token generation event (TGE) last month, where their native token ES was launched on Eclipse, Ethereum, and Solana. Since then, ES has taken a major hit, dropping over 65%. At the time of writing, it is trading at $0.1584, down 7.2% in the past 24 hours, according to CoinGecko.
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
New CEO’s Vision
Huang shared on X:
“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.”
Despite the workforce reduction, Eclipse confirmed it will continue to operate and improve its Layer-2 chain, with more resources being directed toward in-house applications built on top of it.
A Brief History
Founded in 2022, Eclipse Labs launched its Ethereum-connected rollup in November 2024, which runs the Solana Virtual Machine. They’ve marketed themselves as the "Solana on Ethereum," aiming to combine Solana's speed with Ethereum’s security. But now, it seems they’re ready to take their focus to the next level: direct-to-user applications.
Anastasiia G
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