On November 24, Ardana, a large decentralized finance (DeFi) ecosystem and stablecoin based on Cardano (ADA), stop suddenly development work, citing “uncertainty about funding and timing of the project”. The project will remain open source for builders and the remaining balances and funds will be held by Ardana Labs “until another team of competent developers arrives in the community to continue our work.”
“The development of Cardano was difficult, with a lot of money spent on tools, infrastructure and security. As a result of this, together with the uncertainty of the completion of the development, the best decision was made, which is to end the development of duUSD. »
This decision surprised many people due to the sudden nature of the announcement. It seems, however, that the problems had been there for some time already. As of July 4, Ardana has been holding an initial pooled equity offering, or ISPO, in an attempt to fund its operations. Unlike traditional fundraising mechanisms, ADA developers do not get delegated from users, but get rewarded. Users are encouraged to continue delegating by receiving native DANA tokens as a reward.
Unfortunately, the fall of the price of DANA and ADA at the same time, as well as the fall in the promised results of Cardano, caused problems for ISPO issuers, due to the ongoing cryptocurrency winter. So, over the past year, DANA Ardana’s native tokens have lost almost 99.85% of their value.
In January, Ardana claim that “Almost all product development and smart contract work is complete. We could launch our products in the next few weeks if we wanted to” and blamed the delay on “liquidity issues” of the Cardano network and “risk to user funds.” Most users responded negatively, blaming Ardana instead. Individual, @LucidCiC, write :
“You seem to be blaming Cardano for your own lack of motivation and enthusiasm. You decided to build here for a reason, and now you are giving up. Others like Axo will come and take all the glory. »