Kadena pledged to support the transition to fully community governance.
Following the announcement, the KDA token plummeted more than 65%, evidencing investor disappointment.
The Kadena organization, dedicated to the development of scalable cryptographic solutions, announced that it will cease all commercial operations and will stop providing active maintenance to the network that bears its name.
As reported by the company on the social network X, The decision is due to current market conditionswhich make it difficult to continue promoting and supporting the adoption of this decentralized platform.
Despite the closure, the company emphasized that the Kadena network continues to operate independently. “The network, based on a proof-of-work model and smart contracts, works thanks to miners and nodes that autonomously manage the contracts and protocols,” they pointed out.
To ensure the continuity of the platform, the organization announced that it will soon launch a new version of the software that will allow the nodes to continue functioning independently. In addition, the native KDA token and protocol will continue to be active.
According to its latest economic update, over 566 million KDA will continue to be distributed as mining rewards until 2139, while 83.7 million KDA will be progressively unlocked until November 2029.
Kadena also expressed its willingness to collaborate with the community to facilitate the transition to a completely community-based governance and maintenance model, and assured that it will publish updates as these processes are finalized.
In its message, the organization expressed deep gratitude to all team members, community and partners who were part of the project, and wished them success in their future endeavors.
The news of this closure has generated concern among investors, reflected in a sharp drop in the price of the KDA token. In the last 24 hours, its value has plummeted 66.04%currently standing at 0.07224 dollars (USD).
As Kadena moves towards a fully community-based governance model, other networks have also gone through transition processes. As reported by CriptoNoticias, in October 2024 the BNB Chain team announced that the BNB Beacon Chain network would close its validators on November 19 and that its functionalities would be integrated into BNB Smart Chain, urging users to migrate their native tokens to avoid losses.