On November 24, Ardana, a leading decentralized finance (DeFi) and stablecoin ecosystem that builds on Cardano (ADA), suddenly stopped development, citing “uncertainty about funding and project timelines.” The project will remain open source for builders, while treasury balances and remaining funds will be held by Ardana Labs “until another competent development team in the community comes forward to continue our work.”
“Development on Cardano was difficult because a lot of funding went into tools, infrastructure, and security. This, along with the uncertainty of completing development, meant that the best course of action was to stop development of dUSD.”
The move came as a shock to many due to the sudden nature of the announcement. However, it appears that problems have existed for some time. Starting on July 4, Ardana held an initial public offering (ISPO) to finance its operations. Unlike traditional fundraising mechanisms, developers do not receive user-delegated ADAs, but instead receive stake rewards. Users are incentivized to continue delegating by receiving native DANA tokens as a reward.
Unfortunately, the current price collapse of DANA, ADA, as well as declining Cardano staking returns from the ongoing crypto winter have caused problems for ISPO issuers. Over the past year, Ardana’s native DANA tokens have lost nearly 99.85% of their value.
In January Ardana he claimed that “almost all product/smart contract development is complete. We could launch our products in a matter of weeks if we wanted to,” and instead blamed the delay on the Cardano network’s “liquidation issues” and “risks to user funds. ” Most users reacted negatively, blaming Ardan instead. One person, @LucidCiC, he wrote:
“It sounds like you’re blaming Cardano for your own lack of motivation and commitment. You decided to build here for a reason and now you’re giving up. Others like Axo will come along and take all the glory.”