Eclipse Labs replaces CEO and cuts 65% of staff

Vijay Chetty, also known as 0xLitquidity, was replaced as CEO by former Product Lead Sydney Huang. The company announced the leadership change as part of a restructuring plan.

Eclipse Labs cut 65 percent of its staff during the restructuring. The company said it will build its own applications instead of only providing infrastructure for other developers.

The Layer 2 blockchain developer said it will create a “breakout application” to generate demand for its Eclipse network. The company had previously operated as a neutral infrastructure provider.

Sydney Huang said the company needed to adapt to market conditions. “The market has shifted: interesting technology alone is no longer enough, and scale is meaningless without users,” Huang said.

Eclipse's ES token became transferable on July 16, 2025. The token has fallen more than 65 percent in value since launch, dropping below $0.16.

Eclipse Labs announced the restructuring to “align resources with our updated strategy.” The company will focus on practical applications that generate usage and revenue.

The restructuring occurred weeks after Eclipse's token generation event for the ES token. Market performance has declined since the token became available for trading.

Eclipse was founded as a high-throughput Layer 2 network for blockchain developers. The network positioned itself as infrastructure for other projects to build applications.

Huang said the company will continue building infrastructure but through applications that create real usage. The new strategy focuses on products that generate user activity and revenue streams.