Kadena Team Discontinues Support for Layer 1 Blockchain
The native token behind the Kadena Layer 1 blockchain, KDA, experienced a significant plummet of 60% in just 90 minutes on Tuesday. This drastic decline followed the announcement by the founding team that they would be winding down and halting all network maintenance due to unfavorable “market conditions.” The team expressed their gratitude to the community for their support and participation in the project, regretting the circumstances that led to this decision.
As stated in a post, “We are extremely grateful to everyone who has shared this journey with us. We regret that due to market conditions we are unable to continue to promote and support the launch of this unique decentralized offering.” This move underscores the challenges smaller blockchains face in establishing a sustainable user base and generating profits amidst fierce competition from larger chains like Ethereum and Solana.
Kadena, founded in 2016 by Stuart Popejoy and Will Martino, was positioned as a “Blockchain for Business.” Popejoy, previously the head of JPMorgan’s former Blockchain Center of Excellence, and Martino, who had worked as a technical lead for the Securities and Exchange Commission’s Cryptocurrency Steering Committee, brought significant expertise to the project. Their backgrounds underscore the potential and initial promise of Kadena, which once saw its token value rise to nearly $4 billion in November 2021, according to data from CoinGecko.
Despite the team’s decision to discontinue support, the Kadena blockchain and its token, KDA, will remain operational. A small team will be retained to handle the settlement phase, and independent auditors will continue to process transactions and mine blocks on Kadena’s proof-of-work blockchain. The team emphasized that “The Kadena blockchain is not owned or operated by the Company. As a fully decentralized proof-of-work smart contract blockchain, the network is operated by independent miners, while on-chain smart contracts and protocols are managed independently by their maintainers.”
Future Plans and Token Distribution
Kadena announced plans to release a new binary that ensures uninterrupted operations without their intervention, encouraging all node operators to upgrade as soon as possible. Additionally, the team will consult with the community on how to distribute the 83.7 million KDA tokens scheduled for release in November 2029. Furthermore, an additional 566 million KDA tokens are slated for distribution as mining rewards by 2139, highlighting the long-term implications of the project’s continuity.
The decision by the Kadena team to discontinue support reflects the broader challenges in the blockchain and cryptocurrency space, where projects must navigate complex market conditions, technological advancements, and regulatory environments. For more information on this development and its implications, visit the original source.
