Clockwork, a Solana-powered decentralized automation network, has announced plans to wind down critical projects on the protocol in October. The Clockwork updated the X community (formerly Twitter) on August 27 that limited commercial use compelled the company to make the hard decision.
An X post from Nick Garfield, the founder of Clockwork, revealed that the company will soon suspend further developments on the protocol. The executive stated that Clockwork plans to stop the protocol’s operation from October 31.
Clockwork Suspends Operations
Garfield explained that the spiking opportunity cost has forced the company to stay away from the project. The official admitted that Clockwork has lately experienced limited commercial upside that limited the growth of the protocol.
The executive stated that the Clockwork staff has grown interested in exploring new opportunities. However, Garfield argued that the developers can utilize the Clockwork platform to complete transactions and build automated smart contracts.
The executive explained the role of smart contracts in decentralized finance. The unique features of smart contracts eliminate the involvement of the third party in any transaction.
Occasionally, the smart contract is used to verify and facilitate digital transactions. In the X post the executive highlighted the benefits of smart contracts in the payment sector.
He stated that once an action is initiated on the smart contract, the user is prevented from making further transaction changes. The smart contracts are considered trustless since no third party will be involved in funds transfer.
Impact of High Opportunity Cost
In light of the Clockwork announcement, the protocol plans to stop operating on Halloween. However, after the closure, the Clockwork team will enable the user to access the company code on GitHub.
Garfield confirmed that Clockwork plans to maintain the codes on an open-source platform, which is readily accessible. He pedged to support the developers interested in improving the protocol through forking and shipping.
In August last year, Clockwork generated $4 million in a seed funding round led by Multicoin Capital and Asymmetric. The company stated the $4 million investment will support the protocol operations.
On the X platform, the Clockwork users demanded to know whether the participant in the funding round would be compensated after the shutter of the protocol. Garfield responded that the firm still holds substantial capital generated from the previous funding round.
The executive plans to engage the Clockwork stakeholder to determine how the funds could be utilized. Though the decision concerning the return the fund to the investor might take much longer.
Reportedly, Clockwork has joined other Solana protocols that closed operations this year. At the beginning of the year, Friktion and Everlend Finance ceased operations due to uncertainties in the market.