Key Takeaways
- The core development team supporting the Kadena blockchain project is immediately shutting down due to market conditions.
- The KDA token price crashed by over 66% following the announcement.
- The proof-of-work (PoW) network will continue operating through independent miners, but without active development or promotion.
Table of Contents
Abrupt Termination of High Hope Project
In a surprise announcement, the Kadena Blockchain founding team announced that all business would cease, and further active maintenance of the network would halt. The project started by JPMorgan blockchain veterans Stuart Popejoy and Will Martino cited unsustainable market conditions as the cause for its immediate cessation.
The news prompted mass selling, leading to a collapse of over 66% in the KDA Token value in a few hours, erasing millions in market value from a project that once neared a $4 billion valuation during the 2021 bull market.
Read also: Ethereum Kohaku Roadmap Unveils Privacy-First Wallet Solutions
Network Survival Amid Corporate Collapse
Even though the company has shut down, the Kadena blockchain is built to continue working due to its decentralized proof-of-work (PoW) structure. To this point, the team is releasing the final binary update, which will enable node operators to maintain the network independently.
- Mining rewards will continue with the distribution of over 566 million KDA until 2139
- The protocol’s smart contracts will remain operational under their respective maintainers
For the community to gain a better understanding, the technological shell will remain in place, albeit without its primary driving force.
Read also: Kamino Security Page Launches Detailing $4B Protection Framework on Solana
A Warning for Layer-1 Projects
The collapse of the Kadena blockchain corporate entity teaches us the immense challenges smaller layer-1 networks face competing against established giants like Ethereum and Solana.
This time, despite its architecture’s strengths, such as the Chainweb parallel processing solution and value propositions like “a blockchain for business”, Kadena failed to gain sufficient traction and funding to withstand a market downturn. For similar or even bigger projects, even with exorbitant funding, there are still significant risks when operating in an increasingly cluttered space and competitive market.
FAQs
Will the Kadena blockchain stop working?
No, the network itself is decentralized and will continue operating through independent miners and node operators. However, there will be no active development, bug fixes, or promotional support from the original project team.
What happens to my KDA tokens?
KDA tokens will remain tradable on supported exchanges, and the network will continue processing transactions. However, with the core team dissolved, the token’s value will depend entirely on community interest and mining activity without institutional backing.
Can the Kadena ecosystem continue without the company?
While technically possible, history shows that networks losing their core development teams typically experience declining activity. The community would need to self-organize for governance and development, Though, is a significant challenge with no funded leadership.
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