The native token behind the Kadena layer 1 blockchain plummeted 60% in 90 minutes on Tuesday after its founding crew introduced it was winding down and ceasing all community upkeep as a result of “market circumstances.”
In a publish to X on Tuesday, Kadena mentioned it “is not in a position to proceed enterprise operations and will probably be ceasing all enterprise exercise and lively upkeep of the Kadena blockchain instantly.”
“We’re tremendously grateful to everyone who has participated on this journey with us. We remorse that due to market circumstances we’re unable to proceed to advertise and help the adoption of this distinctive decentralized providing,” it mentioned.
The “blockchain for enterprise” branded layer 1 was based in 2016 by Stuart Popejoy and Will Martino.
Popejoy was beforehand the lead of JPMorgan’s former Blockchain Heart of Excellence, whereas Martino, Kadena’s former CEO, had labored as a tech lead for the Securities and Trade Fee’s cryptocurrency steering committee earlier than focusing his efforts on Kadena full-time.
The shutdown reveals how difficult it’s for smaller blockchains to construct a sustainable person base and switch a revenue amid fierce competitors from bigger chains like Ethereum and Solana.
The Kadena (KDA) token as soon as soared near a $4 billion valuation in November 2021 however right this moment sits at $30.9 million, CoinGecko knowledge reveals.
Kadena and KDA will stay on-line
Kadena mentioned it might retain a small crew to deal with the wind-down interval; nevertheless, impartial validators will nonetheless have the ability to course of transactions and mine blocks on Kadena’s proof-of-work blockchain, it famous.
“The Kadena blockchain just isn’t owned or operated by the corporate. As a totally decentralized proof-of-work smart-contract blockchain, the community is operated by impartial miners, whereas onchain good contracts and protocols are ruled independently by their maintainers,” it defined.
Associated: The token is lifeless, lengthy stay the token
Kadena mentioned it is going to quickly “present a brand new binary that ensures uninterrupted operation with out our involvement, and will probably be encouraging all node operators to improve as quickly as attainable.”
Kadena nonetheless wants plan for unlocked KDA tokens
The KDA token may even proceed, and the Kadena crew mentioned it is going to seek the advice of with the neighborhood on the way it ought to distribute the 83.7 million KDA tokens scheduled to be launched in November 2029.
There are one other 566 million KDA tokens to be distributed as mining rewards till 2139, Kadena famous.
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