Cardano Layer-2 Protocol Announces Worrying News for Algorand Users

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Right now Cardano and Milkomeda, a Layer-2 protocol active on the Algorand mainnet, announced worrying news for Algorand users.

Milkomeda shared an important update for Cardano and Algorand with a new tweet. The Milkomeda A1 aggregation on the Algorand mainnet is currently not generating enough fees to cover the operating expenses of its validators, forcing a difficult decision to make. stated.

Milkomeda A1’s validators will shut down at the end of May 2024. In light of this, users who hold funds on AI are urged to transfer them within the next six months to ensure their safety.

Milkomeda’s journey began with the launch of its first sidechain on Cardano called Milkomeda C1.

Milkomeda C1, which went live in March 2022, enables the deployment of Ethereum dApps in the Cardano ecosystem. This was soon followed by the November launch of Milkomeda A1 Rollup on Algorand Mainnet.

While the Algorand recovery struggles for its sustainability, Milkomeda C1 on Cardano shows promising signs despite the crypto market’s ongoing challenges, according to Milkomeda. Milkomeda goes on to say that C1 currently generates enough fees from transactions and delegation to maintain the network.

Milkomeda V2 went live a few months ago, changing the rules of the game for the Cardano ecosystem and the C1 sidechain, unlocking new possibilities and improving the capabilities of the platform. This transformative update introduced three key features including wrapped smart contracts, liquid staking, and upgrades to validator set management to make it easier to add more validators.

Milkomeda says it is hopeful about the possibility of Milkomeda C1 becoming fully independent and maintainable following the recent upgrade to v2 (version 2.1).


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