Solana-based protocol, Cardinal has announced it is winding down operations owing to difficult times. The 18-month-old protocol acknowledged it has been a challenging build time, an “incredibly difficult macroeconomic environment,” and is “stuck in the context of the crypto maximalist community.”
The protocol added that product market fit continues to be difficult to find, and team members are now exploring other pursuits. Cardinal was inspired by the utility and intrinsic value of the blockchain, however, it confirmed that its hope for a faster blockchain adoption was dashed.
Following the shutdown, the protocol’s deployments will no longer be live, however, its code will remain open source. Cardinal assured its users their assets are completely safe, and will be distributed at the end of the wind-down process.
All depositors are required to manually withdraw their assets from June 28 to August 26. This will largely require un-staking tokens staked using Cardinal Staking or de-listing currently listed rentals on the Cardinal rental marketplace.
Before the withdrawal deadline, Cardinal will disable the deposit option on its protocol on July 7th leaving only the withdrawal option. Alongside the withdrawal option, “Staking, Stake Pool creation, Token Manager creation in any context (rental listing, etc.), New NFT rentals and rental extensions, and Namespaces name linking (social media handles and otherwise)” will be disabled.
However, all deposits remaining at the end of the notice period will be forcibly withdrawn to depositors’ addresses, Cardinal Labs said.
Following, Cardinal will take down its UIs and remove its smart contract deployments from Solana. Also, Cardinal stated that in the process of removing the smart contracts, the protocol will return “SOL-denominated rent stored in all accounts to the relevant account’s initial fee/rent payer.’
Teams using the Cardinal Labs protocol via CPI from other smart contracts in different business contexts are advised to consider the implications of the wind-down timeline on their respective platforms/systems.
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