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Kadena shuts down operations, citing market conditions. The blockchain will continue under miners and community governance.
Author: Tanishq Bodh
October 22, 2025 – In a stunning announcement that shook the blockchain industry, Kadena, the organization behind the Kadena blockchain, announced a complete shutdown of its operations on October 21, 2025.
Posted on X (formerly Twitter), the statement cited “market conditions” as the reason for the immediate halt to all business activities and network maintenance. As a result, the decision not only ends a once-promising project but also reignites debate over whether true decentralization can endure once a founding team steps away.
Kadena’s official post confirmed that the organization will cease all business operations and active network maintenance.
A small transition team remains to manage the wind-down and assist users.
The company emphasized that “the Kadena blockchain is not owned or operated by the company”, reaffirming its decentralized proof-of-work (PoW) model.
The announcement sparked a rapid market reaction. Within hours, $KDA crashed from $0.20 to $0.09, wiping out more than half its value.
Trading volume soared above $70 million, led by Binance, as panic selling spread. The token’s market cap dropped from over $200 million to under $90 million, a devastating 99.7% fall from its 2021 high of $27.64.
Replies to the post were disabled, but the announcement still drew over 6.6 million views and thousands of shares within a few hours.
Rumors of a hack were quickly dismissed on Kadena’s Discord, confirming the shutdown was voluntary.
Launched in 2020 by former JPMorgan executives Stuart Popejoy and Will Martino, Kadena set out to merge enterprise-grade security with blockchain scalability. Its Chainweb architecture processed transactions in parallel, while the Pact language simplified smart contract development.
Over the years, Kadena branded itself as “the blockchain for business.” It raised funds from Binance Labs, launched a $100M ecosystem fund, and later added a $50M developer grant program. However, adoption gradually waned as the market evolved.
Importantly, Kadena’s tokenomics were designed for longevity. About 70% of its supply goes to miners until 2139, while another 20% unlocks through 2029 to fund growth. The remaining tokens went to investors by 2022, a structure that now supports its community-led future.
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The response has been deeply divided. Many long-time supporters called the shutdown an “abandonment,” criticizing the team for poor planning. Others, however, viewed it as a true test of decentralization, noting that the chain still runs without centralized oversight.
Despite the fallout, some optimism remains. Community leaders on Discord are already discussing new DAOs, independent audits, and foundation-style leadership to keep the network alive. With mining rewards continuing until 2139, there may still be enough incentive for participants to stay engaged.
For now, Kadena’s downfall stands as both a warning and a case study, a reminder that even the most advanced blockchains can fail without demand and adaptability. As one analyst summarized, “Decentralization only works when the community truly steps up.”
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