AlgoExplorer blockchain explorer team announces the closure of the project

What’s new? The developers of the AlgoExplorer blockchain explorer for the Algorand blockchain have announced the project’s closure due to lack of funding. Thus, Algo Foundation, the non-profit organization responsible for the development of Algorand, used a 30-day moving average of the price of the native token ALGO to calculate the amount of grants to ecosystem projects for 2023. However, this funding model proved ineffective due to a decline in the exchange rate during the year. The developers of AlgoExplorer write that they cannot cover operating costs even with the investment of personal funds.

Source: Twitter.com

What else is known? AlgoExplorer has been part of the Algorand ecosystem since the project’s launch, but its functionality was gradually cut back over the year to reduce costs. In particular, NFT support and the provision of advanced statistics on network activity were discontinued, and the authentication system was removed.

The blockchain explorer team criticized the Algo Foundation for inaction. Thus, the foundation’s employees did not take any action to solve the project’s financial problems despite direct requests. Developers believe that Algo Foundation deliberately ignored requests, waiting for the expiration of the annual contract to gain control over the product code.

The developers added that AlgoExplorer was the face of Algorand as it served all exchanges, developers, and users, and its loss to the ecosystem would be a major blow.

They praised the non-profit organization’s innovative initiatives to explore new use cases for the blockchain and make it more environmentally friendly. But emphasized that these efforts have overshadowed the fundamental goal of keeping Algorand compliant with the demands of cryptocurrency users.

“This shift in focus has led to an oversight of the critical role of sustaining essential tools and services, pivotal for the growth and stability of the Algorand network,” the AlgoExplorer developers concluded.

As of December 22, 12:00 UTC, ALGO ranks 44th in the overall cryptocurrency ranking with a capitalization of $1,85 billion and is trading at $0,2302 on Binance, having added 13,46% over the day.

On November 30, Snowtrace, a blockchain explorer for the Avalanche network, also ceased operations due to a lack of funding.