On Nov. 24, Ardana, a leading decentralized finance (DeFi) and stablecoin ecosystem building on Cardano (ADA), stopped development abruptly, citing “uncertainty in the financing and schedule of the project.” The project will remain open source for builders, while Ardana Labs will retain treasury balances and remaining funds “until another competent development team in the community comes forward to continue the work.”
“Cardano development has been difficult with a large amount of funding going into tools, infrastructure, and security. This, coupled with uncertainty about the completion of development, has led to the best course of action being to stop development of dUSD” .
The move surprised many by the suddenness of the announcement. However, it seems that the problems were already present for some time. Since July 4, Ardana has entered into an Initial Staking Pool Offering, or ISPO, to fund its operations. Unlike traditional fundraising mechanisms, developers do not receive ADA delegated by users, but staking rewards. Users are incentivized to continue delegating by receiving native DANA tokens as a reward.
Unfortunately, a simultaneous price collapse of DANA, ADA, as well as declining Cardano staking returns from the ongoing crypto winter has caused problems for ISPO issuers. In the last year, Ardana’s native DANA tokens have lost close to 99.85% of their value.
In January, ardana he claimed that “almost all product/smart contract development is finished. We could launch our products in a few weeks if we wanted to” and instead blamed the delay on Cardano network “settlement issues” and “risk for user funds”. Most users reacted negatively, blaming Ardana instead. An individual, @LucidCiC, wrote:
“It sounds like you are blaming Cardano for your own lack of motivation and dedication. You decided to build here for a reason, and now you are giving up. Others like Axo will come along and take all the glory.”
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