Milkomeda, a Layer-2 protocol currently live on Cardano and the Algorand mainnet, has announced concerning news for Algorand users.
In a new tweet, Milkomeda shares an important update for Cardano and Algorand. It stated that the Milkomeda A1 rollup on the Algorand mainnet is currently not generating sufficient fees to cover the operating expenses of its validators, and this shortfall has forced a difficult decision to be made.
Milkomeda A1's validators will be shutting down at the end of May 2024. In light of this, users with funds on AI are urged to transfer them within the next six months to ensure their safety.
Milkomeda’s journey began with the launch of its first sidechain, called Milkomeda C1, on Cardano.
Milkomeda C1, which went live in March 2022, enables the deployment of Ethereum dApps in the Cardano ecosystem. This was soon followed by the November launch of the Milkomeda A1 Rollup on the Algorand Mainnet.
According to Milkomeda, while the Algorand rollup is battling its sustainability, Milkomeda C1 on Cardano is showing promising signs despite the crypto market's ongoing challenges. It goes on to say that the Milkomeda C1 is presently generating adequate fees from transactions and delegation to sustain the network.
Milkomeda V2, a game-changing upgrade for the Cardano ecosystem and C1 sidechain, unlocking new possibilities and enhancing the platform’s capabilities, went live a few months ago. This transformative update introduced three core features, such as wrapped smart contracts, liquid staking and upgrades to validator set management to make it easier to add more validators.
Milkomeda says that following the recent upgrade to v2 (version 2.1), it is hopeful about Milkomeda C1's prospects for becoming fully independent and sustainable.