Layer-1 Blockchain Kadena to Cease Operations, KDA Tumbles 60%

The firm overseeing Kadena’s development announced it will discontinue operations and stop maintaining the network, citing unfavorable market conditions. While the decentralized blockchain will remain online, its native token, KDA, dropped by over 60% following the news.

KADENA PUBLIC ANNOUNCEMENT

We regret to announce that the Kadena organization is no longer able to continue business operations and will be ceasing all business activity and active maintenance of the Kadena blockchain immediately.

We are tremendously grateful to everybody who…

— Kadena (@kadena_io) October 21, 2025

Developers to Keep Kadena Running

Kadena clarified that the blockchain itself is not owned or controlled by the company. As a proof-of-work network, it relies on independent miners and developers who manage on-chain contracts and protocols.

The organization noted that developers would soon release a new binary to keep the network running without its involvement. Node operators must upgrade once the update becomes available to ensure uninterrupted service.

Following the announcement, KDA’s price fell sharply to around $0.089 at the time of writing. According to CoinGecko data, this represents a drop of more than 99% from its 2021 peak of $27.64.

From Ambitious Launch to Uncertain Future

Former JP Morgan executives Stuart Popejoy and William Martino launched the Kadena blockchain in January 2020. Both founders previously worked on the bank’s early blockchain initiatives before creating their independent Layer 1 network.

Kadena promoted itself as “the blockchain for business,” combining Bitcoin-style proof-of-work security with smart contract functionality. The team argued that it could offer more trust and scalability compared to existing blockchains such as Bitcoin and Ethereum.

Although headquartered in New York, Kadena claimed to maintain decentralization through globally distributed miners. The project also aimed to expand its ecosystem by introducing a $100 million grant program for Web3 developers in 2022.

Despite its expansion efforts, Kadena struggled to attract sustained adoption or developer activity. With the company’s closure, Kadena now joins a growing list of blockchain projects unable to sustain operations amid a challenging market. The network’s future will now depend on its remaining community and independent developers.

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