The Kadena organization announced it would immediately cease all business operations and active maintenance of its blockchain, citing prolonged market challenges.
The decision marks the culmination of nearly a decade of development for the proof-of-work Layer-1 network, founded by former JPMorgan and Securities and Exchange Commission executives Stuart Popejoy and Will Martino.
In its official statement on X late Oct. 21, Kadena confirmed that all business activity and staff operations have been terminated, with a small internal team retained to oversee the transition.
The organization said it would release a new binary to ensure continued network function without its involvement, emphasizing that the blockchain’s proof-of-work design allows it to operate independently via miners and node operators.
Despite the shutdown, Kadena (KDA) noted that its token and protocol remain active. Mining rewards for over 566 million KDA will continue until 2139, while 83.7 million KDA are set to unlock through Nov. 2029. The team added that discussions on community-led governance are planned as part of the transition.
The announcement immediately rocked the market. Kadena’s KDA token has fallen almost 60% to $0.0872, extending its losses to more than 99% from its peak of $27.64 in 2021. As holders scrambled to sell their holdings or speculate on the collapse, trading volume jumped 1,292% to almost $99 million in a single day.
Initial speculation of a hacked announcement was later dismissed after Kadena confirmed the statement’s authenticity on Discord. The post on X drew over 3 million views within hours, with many users expressing disbelief and frustration.
Before the closure, ecosystem data had already indicated strain. In early 2022, Kadena’s total value locked reached a peak of $9 million, but by late 2025, it had dropped to just over $170,000, as per DeFiLlama data.
The closure marks a quiet end for a project once seen as a scalable, enterprise-grade alternative to Ethereum (ETH).
