Layer1 blockchain project Linera has begun scaling back operations after its token sale on the Sonar platform failed to meet the minimum fundraising threshold. The sale drew nearly $900,000 in commitments, but the team returned all funds after the round fell short.
Linera had previously raised about $12 million, with a16z Crypto among its backers. According to crypto.news, the project also failed to secure enough money in emergency fundraising talks to keep development going.
The team now plans to gradually shut down its application and Discord community. Linera said community points balances will be preserved, but it did not promise that those points will be redeemable for tokens or any other rights in the future. The project also did not provide a new timeline for its mainnet launch.
The update marks a sharp setback for the Layer1 project as it moves from fundraising efforts to an operational wind-down.
Layer1 blockchain project Linera has started scaling back operations after its token sale on the Sonar platform failed to reach the minimum fundraising threshold.
The sale attracted nearly $900,000 in commitments, but the team returned all funds after the round fell short.
Emergency fundraising also fell through
Linera had previously raised about $12 million, with a16z Crypto listed among its investors. According to crypto.news, emergency fundraising talks also failed to bring in enough capital to sustain development.
As a result, the team will gradually shut down its application and Discord community.
Points will remain, but no redemption promise
Linera said community points balances will be preserved. Still, the project did not commit to allowing those points to be exchanged for tokens or any other rights in the future, and it did not provide a new schedule for its mainnet launch.
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