{"id":54169,"date":"2023-08-28T22:34:57","date_gmt":"2023-08-29T02:34:57","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/solana-based-protocol-clockwork-to-shut-down-despite-4-million-seed-funding\/"},"modified":"2023-08-28T22:34:59","modified_gmt":"2023-08-29T02:34:59","slug":"solana-based-protocol-clockwork-to-shut-down-despite-4-million-seed-funding","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=54169","title":{"rendered":"Solana-based Protocol Clockwork To Shut Down Despite $4 Million Seed Funding"},"content":{"rendered":"
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Solana-based automation protocol Clockwork will be winding up its operations after its founder disclosed the company\u2019s decision to step away from \u201cactive development of the protocol.\u201d\u00a0<\/i><\/p>\n

Nick Garfield, the founder of the protocol announced<\/u><\/a> on Aug 28 the plans of the company to shut its doors by Oct 31 citing opportunity costs and lack of a commercial upside as the crypto bear market bites harder.\u00a0<\/p>\n

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\u201cUltimately the reason we are stepping away now is simple opportunity cost. We admittedly see limited commercial upside in continuing to develop the protocol, and have a growing personal interest to explore new opportunities.\u201d<\/i><\/p>\n<\/blockquote>\n

While the team behind the project will cease main development, Garfield insisted that the project\u2019s code will remain open-source and easily accessible on GitHub, throwing the future of the project to the community and encouraging users to fork the code.<\/p>\n

\u201cWhere Clockwork goes from here is up to you!\u201d The beauty of crypto is that it is truly open and permissionless. If you have a vision for improving the protocol, you have our full endorsement to fork and ship it.\u201d<\/i><\/p>\n

Clockwork was developed to let users build automated and scheduled smart contracts to facilitate payroll payments and other frequent transactions.\u00a0<\/p>\n

The winding up of Clockwork is based on economic reasons as it becomes the latest company to feel that sting of the harsh crypto winter<\/u>, a market that has seen digital asset firms go under.\u00a0<\/p>\n

$4 million seed round flagged\u00a0<\/h2>\n

Last year, Clockwork raised $4 million in a seed round from Solana Ventures, Multicoin Capital, and Asymmetric.\u00a0<\/p>\n

Following the announcement of closing its doors on X (Twitter), users were curious about issues relating to the seed round of last year or at least the remainder not yet invested.\u00a0<\/p>\n

User \u201ctracy.sol\u201d asked<\/u><\/a> on X, \u201cTough Q but just curious, if there\u2019s any money remaining from the seed round, will that be returned to investors and be written off as a loss?\u201d\u00a0<\/i><\/p>\n

Garfield confirmed<\/u><\/a> that part of the fund is left stating that while returning the money is an option, a decision has not yet been reached.<\/p>\n

\u201cWe still have a meaningful portion of our seed funding. Fully shutting down is an option, but I need to take a minute to reset myself before deciding one way or the other.\u201d<\/i><\/p>\n

Solana has been impacted by the bear market in several ways ranging from falling projects to plunging DeFi volumes. The total value locked (TVL) on the ecosystem plummeted from about $1 billion to $310 million.\u00a0<\/p>\n<\/p><\/div>\n