Solana Gum Protocol Shuts Down
Rebeca Moen Sep 06, 2023 15:59
Gum protocol on Solana ecosystem is shutting down due to market conditions and revenue issues, raising concerns about the sustainability of protocol-layer projects.
The Gum protocol on Solana ecosystem announced its shutdown today. The team behind Gum and its associated product, Wordcel, cited challenging market conditions and difficulties in generating revenue as the primary reasons for the decision.
Gum initially gained traction after winning the Web3 track of the 2022 Solana Riptide Hackathon. Launched in February 2022, Wordcel, the team's first project, had garnered a healthy user base during its beta phase. The protocol aimed to serve as the foundational layer for consumer decentralized applications (dApps) on Solana (SOL) and web3 platforms.
Despite the initial success and community support, Gum faced challenges.
Like many other projects, we too have been affected by the challenging market conditions and negative industry events in recent times,
the team stated in their official announcement. These market conditions led the team to reevaluate their future direction, particularly concerning the adoption of their Session Keys toolset.
Data points to consider include the project's start date in February 2022, the announcement of its shutdown on September 6, 2023, and its key products, Wordcel and Session Keys. The project also won the Solana Riptide Hackathon in 2022.
The team has made efforts to simplify the migration process for existing users. All software, from frontend to indexers and on-chain programs, will be open-sourced. The Magicblock team will maintain the open-sourced Session Keys protocol going forward. The Wordcel app hosted on wordcelclub.com will be taken down on or before October 1, 2023. Users can migrate to a self-hosted version of the Wordcel frontend.
The shutdown of Gum raises questions about the sustainability of protocol-layer projects in the Solana ecosystem, particularly those that struggle with revenue generation. However, the team remains "bullish on the future of consumer dApps on Solana," indicating that while this chapter may be closing, the story of consumer dApps on Solana is far from over.
The shutdown of Gum serves as a cautionary tale for emerging projects in the volatile crypto market. While the team's work will continue to exist in an open-source format, the challenges they faced highlight the difficulties of transitioning from a community-supported project to a sustainable business.
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