On the evening of October 21st, Kadena announced that it is no longer able to continue business operations and will cease all activity and active maintenance of the blockchain, revealing a transition to community governance and maintenance.
Kadena is an L1 blockchain that combines the PoW mechanism from Bitcoin with DAG principles to offer a scalable version of Bitcoin.
Following the project’s announcement, the KDA token dropped sharply.
Kadena’s Business Shutdown Details
In an official note via X, the project revealed that the decision has been made due to unfavorable market conditions, saying that it’s unable to continue and promote and support the adoption of its decentralized offering.
The team said that the staff has been notified of the operations shutdown, and a small group will be retained to handle this period of transition.
The project also wrote that the Kadena blockchain is not owned or operated by the company. The network is operated by independent miners, and onchain smart contracts and protocols are governed independently by their maintainers.
What’s Next
The team at Kadena explained that for operational continuity, the following steps are next:
- It will provide a new binary that ensures uninterrupted operation without Kadena’s involvement.
- All node operators are encouraged to upgrade as soon as possible.
- The KDA token and protocol will continue despite the team’s absence.
The project also highlighted that, as revealed in its latest tokenomics update from August 2023:
- More than 566 million KDA will be distributed as mining rewards until 2139.
- The platform emission has more than 83.7 million KDA to be unlocked until November 2029.
More updates about the transition to community governance and maintenance will follow.
KDA Price Trajectory
The project’s token KDA experienced a sharp decline following the announcement. KDA was trading at $0.2 on October 21, and its price dropped to $0.08 levels on October 22 after the project’s notes.
At the moment of writing this article, KDA is trading above $0.08 with a market cap of over $28.8 million, down by 59% in the past 24 hours.
