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HomeCryptoNewsKadena Blockchain Organization Shuts Down Operations, KDA Token Plummets

Kadena Blockchain Organization Shuts Down Operations, KDA Token Plummets

Kadena organization announces immediate closure of operations, causing KDA token to drop 47%. Blockchain to continue running with community governance as 566M tokens remain for mining rewards until 2139.

In a sudden announcement that shocked the cryptocurrency community, the Kadena organization declared it would immediately cease all business operations and active maintenance of the Kadena blockchain. This unexpected development triggered an immediate market reaction, sending the native KDA token into a steep decline of over 47%, with the price dropping to $0.121.

Market Impact and Token Distribution

The market responded swiftly to the news, with KDA’s value experiencing a dramatic fall from its previous trading levels. This decline represents a staggering 99% drop from the token’s all-time high of $27.64 achieved during the 2021 bull market. Despite the organization’s closure, the platform’s token economics remain structured with approximately 566 million KDA tokens scheduled for distribution as mining rewards until 2139. Additionally, 83.7 million KDA tokens are set to be released from lockup through November 2029.

Operational Transition Plans

The Kadena team has announced measures to ensure the blockchain’s continued operation despite the organization’s closure. A new binary update will be released to facilitate uninterrupted network functionality without the organization’s direct involvement. The team encourages node operators to implement these updates promptly to maintain network stability. A small transition team will remain to manage this critical period and assist with the shift toward community governance.

The Path Forward

While the organization behind Kadena may be closing its doors, the underlying blockchain infrastructure continues as a decentralized network. The development team has expressed their commitment to engaging with the Kadena community to establish effective community governance and maintenance protocols. This transition represents a significant test of the blockchain’s true decentralization capabilities and the community’s ability to maintain and advance the network independently.

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