Cardinal Protocol, a project built on the Solana blockchain that aimed to enhance the utility of non-fungible tokens (NFTs), will cease its operations due to the current state of the economy.
After securing $4.4 million in funding, the project announced on Twitter that users must complete their withdrawals by August 26, marking the beginning of the winding-down process.
The team behind Cardinal Protocol acknowledged the challenges they faced in navigating the macroeconomic environment since their launch 18 months ago.
Despite achieving some success with NFT-based solutions, they recognized that their reach remained limited to the crypto community. However, they emphasized their commitment to open-source technology by ensuring that their code will remain accessible to everyone even after the project’s operational phase concludes.
Cardinal Protocol announced that it would initiate the mandatory withdrawal of all outstanding deposits at the end of the two-month notice period as part of the winding-down process.
This withdrawal procedure will encompass various assets, including staked tokens, rewards from unallocated stake pools, wrapped in token managers, such as rentals and related items.
The protocol aims to facilitate the return of these assets to their rightful owners. Cardinals initially gained notoriety as a facilitator of the NFT infrastructure protocol.
They are experts in permitting conditional ownership of NFTs and provide features like royalty enforcement, rentals, subscriptions, and staking that all work to increase the usefulness of NFTs.
Slow Progress In Blockchain Adoption
The project raised $4.4 million in a seed fundraising round led by Protagonist and Solana Ventures, with participation from investors like Animoca Brands, Delphi Digital, CMS Holdings, and Alameda Research (the sister company of FTX cryptocurrency exchange).
However, the recent skepticism surrounding the value of NFTs, exemplified by the Azuki ‘Elementals’ launch, highlights the slow progress in widespread blockchain adoption across various industries.
In conclusion, Cardinal Protocol reiterated that the anticipated adoption of blockchain technology by sectors beyond the cryptocurrency industry has yet to materialize.
This raises questions about the need for additional regulations to promote wider adoption and whether Cardinal Labs’ initiatives will eventually expand into the intended sectors they aimed to influence.
