Cardinal Protocol, a Solana-based project that is known for introducing “conditional ownership” in NFT tokens has decided to shut down its operations. This decision is in response to the economic challenge that’s been going on.

In over a year, Cardinal Protocol has since raised $4.4 million in funding to improve the utility of NFTs. The funding was co-led by Protagonist and Solana Ventures. Other industry entities such as Delphi Digital, Animoca Brands, CMS Holding, and Alameda Research also participated in the funding.

The Cardinal protocol was known as an NFT infrastructure protocol facilitator that specializes in enabling conditional ownership of NFTs to offer features including royalty enforcement, rentals, staking, and subscriptions.

However, despite the initial hopes for widespread adoption of blockchain technology across different industries, the progress of its implementation still needs to be made clearer.

“We have done our best to deal with this incredibly difficult macroeconomic environment since we started construction 18 months ago, but like many others, it has been challenging.”

Cardinal team has issued an advisory to its users to manually withdraw their assets from the platform before August 26. Starting July 19, the protocol will stop accepting new deposits, halt staking activities, and disable stake pool creation, token manager creation, name linking, and NFT rental. If users won’t able to withdraw their assets before the deadline, Cardinal has implemented a policy where the remaining assets will be forcibly withdrawn to the depositor’s address.