Solana-based Cardinal Protocol Shuts Down Despite $4.4 Million In Seed Funding: Report
- Cardinal, a Solana-based protocol that raised $4.4M in seed funding, is shutting down gradually due to the challenging macro environment.
- The project offered various services such as NFT leasing, staking, ticketing, and custody, among others.
The Solana-based Cardinal protocol, which raised $4.4M in July 2022, is shutting down due to the challenging macro environment. It offered NFT leasing, staking, ticketing, and custody services.
Solana protocol Cardinal announced that it will gradually close its protocols, including NFT leasing, staking, ticketing, custody, and other functions. The project, which completed a $4.4 million seed round of financing in July 2022, is led by Solana Ventures and Protagonist, with participation from Animoca Brands and others. Cardinal blamed the difficult macro environment for its closure.
Although Cardinal has seen some real usage of its staking, rentals, and identity products, the team still feels like they’re stuck in the context of the crypto maximalist community. They’d hoped that the rest of the world’s industries would have begun adopting blockchain tech at a larger scale by now, but that still feels a ways away.
Cardinal believes that utility and intrinsic value will take center stage for digital assets when the day comes that the rest of the world begins adopting blockchain tech at a larger scale. The Cardinal team hopes that their vision for digital assets will continue to inspire others going forward. The team assures users that all assets are completely safe, and they will all have been returned to their rightful owners by the end of the process.
During the two-month notice period, which runs from June 28 to August 26, Cardinal recommends that any and all depositors of assets into their systems manually withdraw them. All of Cardinal’s website product UIs will remain live during the period so that no one should have any issue doing so.
For the next few weeks, all of Cardinal’s protocols will work exactly as they do currently. On July 19, Cardinal will disable all new deposit instructions across all protocols so that the only operation that can be done for the remainder of the notice period is a withdrawal.
At the end of the notice period, Cardinal will forcibly withdraw all remaining deposits and return them to depositor addresses. Among other things, this will include tokens that are still staked, unallocated stake pool rewards, and NFTs wrapped with token managers (rentals, etc.).
Cardinal will take down its UIs and remove its smart contract deployments from Solana. In the process of removing the smart contracts, Cardinal will return the SOL denominated rent stored in all accounts to the relevant account’s initial fee/rent payer.
For teams that use Cardinal’s protocols via CPI from other smart contracts in different business contexts, Cardinal encourages them to consider the implications of their timeline on their platforms/systems. Cardinal is happy to discuss trivial solutions to migrating away from their protocols on a case-by-case basis for any team that needs assistance.
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