Shane Mac, co-founder of Web3 communication protocol XMTP, announced that XMTP Labs will shut down its shared communication network in early 2027 and shift towards an open-source, self hosted messaging infrastructure that does not require tokens or encrypted wallets, with a focus on supporting encrypted communication between humans and AI agents. Shane Mac admitted that Web3 social and communication did not meet expectations, and the team has long relied on partners to promote network adoption, but sustainable demand has never been formed. He also confirmed that XMTP has never issued tokens and will not issue them in the future, as a reasonable model to support the value of tokens based on real usage needs has not been found. XMTP received a $20 million Series A funding led by a16z Crypto in 2021 and completed a $20 million Series B funding in 2025, with an equity valuation of $300 million at the time. https://www. (wublock123.com)/news/xmtp-labs-to-shut-shared-messaging-network-early-2027-open-source-self-custodial-infrastructure-70537