On November 24th, Ardana, the leading decentralized finance (DeFi) and ecosystem-building stablecoin on Cardano (ADA),stopCiting “uncertain funding and project timeline”, the project will remain open source for creators, while Ardana Labs will hold the treasury and the remaining funds. “Until other talented development teams in the community come out and continue our work.”
“Developing on Cardano is difficult due to the large capital expenditure on the tools, infrastructure, and security, coupled with the uncertainty surrounding the development completion. And the best course of action is to stop the development of dUSD.”
The move shocked many as it was a sudden announcement. However, it appears that the project has been in trouble for some time. Since July 4, Ardana has established an ongoing initial stake pool offering, or ISPO, to fund its operations. Unlike traditional fundraising mechanisms Developers do not receive ADA delegate users, but instead receive rewards for staking, where users receive DANA tokens as rewards.
Unfortunately, the simultaneous price drop for DANA, ADA, and Cardano’s staking returns from the ongoing crypto winter. This has plagued ISPO issuers over the past year, with Ardana’s native DANA token losing nearly 99.85% of its value.
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