Cardano officials had recently announced that they were working on the development of their stablecoin to complete their ecosystem.
They were working in collaboration with Ardana, which is known for the development of stablecoin and decentralized finance ecosystems.
Cardano had announced that they were in the final phases of launching the testnet for their stablecoin. Turns out, both Cardano and Ardana have alarming news for the community.
Joint Announcement by Cardano and Ardana
The executives from both firms made an announcement on November 24 in regard to the progress of their stablecoin project.
The firms have announced that they have halted the development of their stablecoin and its ecosystem. The reason provided by the officials from both companies is the uncertainties about the timeline.
There were rumors that Cardano wanted to get done with the development of the stablecoin sooner. However, there are many delays in regard to the development of the stablecoin.
For Cardano, there are too many uncertainties pertaining to the project’s timeline. They are also facing uncertainties about the funding of the project.
Therefore, they have decided to halt their work on the development of the stablecoin.
Project to Remain Open-Source
The firms have added in the announcement that despite being put on halt, its source code would remain open.
This means that the developers will be able to derive the source code from the project to develop their own stablecoins. This is to ensure that the DeFi industry keeps benefiting from the project.
Ardana, the company that also backs and operates the Cardano operating system, has also made an announcement in regard to the developers.
The officials have announced that they will continue holding the remaining funds and the treasury balances until they find a team of developers.
They want the developers to be competent and experts in their fields so they can work together and complete the project.
Ardana has just given an open opportunity to any development community from the same sector to come forth and complete the project for the company.
The company will be receiving the funding and all the resources needed for the development of the dUSD stablecoin.
Difficulties in the Project
Ardana officials have revealed that they have been facing many difficulties working on the development of the stablecoin on the Cardano network.
There are multiple difficulties involving security, infrastructure, and tooling. They are investing a lot of money but the results are not satisfactory.
Therefore, they have decided to put a stop to the project until a development company comes out to help them with the development process.
Cardano had expected that the launch of the dUSD would work like a charm for ADA, helping to push its trading price. It seems that Cardano is destined to face nothing but losses in the year 2022.