Cardano stablecoin shutters following launch delays
On November 24, Ardana, a renowned decentralized finance (DeFi) and stablecoin ecosystem that was built on Cardano (ADA), abruptly halted development. They justified their choice by saying that there was "funding and project timeline uncertainty."
However, Ardana Labs will maintain any remaining funds and treasury balances in its control "until another competent dev team in the community comes forward to continue our work." The source code for the project will continue to be accessible to anybody who wants to build with it.
The news was made in an abrupt manner, which led many individuals to be taken aback. As a result, the decision came as a surprise to many people.
On the other hand, it would seem that issues have been there for a substantial length of time prior to this point.
Since the fourth of July, Ardana has been conducting what is often referred to as an initial stake pool offering (ISPO) in order to raise capital for its business activities.
Instead of the ADA being donated to the developers by the users, the incentives for staking are given to the developers themselves. This is in contrast to the traditional methods of fund-raising, which allocate the ADA to the developers.
The fact that users are awarded DANA tokens, which are fundamental to the operation of the platform, as a reward for delegating creates an incentive for them to continue doing this action.
Unfortunately, issues have arisen for ISPO issuers as a result of the simultaneous decline in price of DANA and ADA, as well as the falling returns obtained from staking Cardano as a result of the current crypto winter. Both of these phenomena are a direct result of the current state of the cryptocurrency market.
The value of Ardana's native DANA coins has dropped by more than 99.85 percent during the course of the last year.