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Cardano Founder Charles Hoskinson has commented on an official public announcement from the Kadena blockchain team. After nearly a decade in the blockchain space, the Kadena team announced that the organization is ceasing operations.
Charles Hoskinson shows interest in Kadena
Amid the Kadena fallout, Cardano posted on X, "Anyone from the Kadena ecosystem want to reach out?"
This simple outreach signals potential interest in supporting the Kadena transition, perhaps through Cardano’s resources for grants or migration tools.
Charles Hoskinson has a history of ecosystem building and has publicly championed projects like Kadena with a focus on decentralized proof-of-work (PoW) smart contracts.
The support for Kadena comes shortly after Hoskinson predicted a major crypto market transformation, driven by privacy-focused blockchains.
While it is not a formal offer, Hoskinson's potential support for Kadena is an open door. No public responses from Kadena yet, but it could spark collaborations, according to speculations from eager members of the ecosystem. Kadena may leverage the expertise of the IOG team in sustainable PoW alternatives.
In its closure announcement, the Kadena team said it will immediately stop all business activity and active maintenance of the blockchain.
The team cited market conditions as a key reason why it is unable to continue operations. Specifically, Kadena is halting staff operations and active maintenance of the blockchain.
However, it is retaining a skeleton crew for the transition and wind-down period. The team expresses deep thanks to participants, staff, community and partners.
Implications for KDA tokens
Importantly, the Kadena blockchain itself is not shutting down. As a decentralized PoW network, it is run by independent miners, not the company.
The team disclosed that it will release a final software binary update soon to let node operators run the network independently. They, therefore, urged quick upgrades for continuity.
Additionally, KDA, the native token of the Kadena blockchain, will remain unchanged. Notably, over 566 million KDA tokens are still reserved as mining rewards until 2139.
This is in addition to 83.7 million KDA for platform emissions, coming out of lockup until November 2029. The Kadena team has offered to help transition to community governance and maintenance, with updates forthcoming.
However, the announcement triggered immediate market panic, with KDA plummeting over 60% within the past 24 hours.
As a result, the token dropped from around $0.21 to as low as $0.077. Still, the trading volume spiked more than 1,100%, reflecting a mix of panic selling and market uncertainty.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team