Michaela
The native token of Kadena, a layer-1 blockchain platform known for its hybrid proof-of-work design, has plunged 78% after the project’s founding team announced it will wind down operations and end network maintenance, citing unfavorable “market conditions.”
Key points:
- Kadena’s founding team has announced it will cease all operations and maintenance of the blockchain, citing “market conditions,” while a small team remains to manage the transition.
- Despite the team’s exit, the Kadena blockchain and KDA token will continue to operate independently, supported by miners and developers under its decentralized proof-of-work structure.
- Once valued at nearly $4 billion, Kadena’s market cap has fallen to about $22 million, as the project prepares to shift toward community-led governance and long-term sustainability.
“We regret to announce that the Kadena organization is no longer able to continue business operations and will be ceasing all business activity and active maintenance of the Kadena blockchain immediately,” Kadena wrote in an October 21 X post.
Kadena stated that ongoing “market conditions” have made it unsustainable to continue promoting and supporting its decentralized network. The project confirmed that a small team will remain in place to manage the transition and oversee the wind-down process.
Now in its ninth year, the Kadena blockchain operates independently of the company itself. As a fully decentralized proof-of-work smart contract network, Kadena is maintained by independent miners, while its on-chain smart contracts and protocols are governed by their respective developers and maintainers.
Kadena announced plans to release a new binary to ensure the network continues to operate smoothly without the team’s direct involvement. The project also urged all node operators to upgrade promptly once the update becomes available to maintain uninterrupted functionality.
The KDA token and its underlying protocol are expected to remain operational despite the team’s departure. Once valued at nearly $4 billion during its peak in November 2021, Kadena’s market capitalization has since fallen to around $22.26 million, marking a decline of roughly 80%, according to CoinMarketCap data.
More than 566 million KDA tokens are still slated for distribution as mining rewards, a process expected to continue until 2139. Additionally, 83.7 million KDA remain locked under the platform’s emission schedule, set to unlock gradually through November 2029. Kadena stated that it plans to work with the community to facilitate the transition toward community-led governance and network maintenance, with further updates to be shared in the coming weeks.
Kadena’s decision marks a major turning point for one of the few remaining proof-of-work smart contract networks. As operations shift toward a community-driven model, the blockchain’s long-term survival may depend on whether developers, miners, and token holders can sustain momentum without centralized leadership, a test of true decentralization in practice.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
