Layer 1 project Linera shuts down after failed token sale

Linera, a Layer 1 blockchain project backed by investment giant a16z, is ceasing operations with immediate effect. The token sale on the Sonar platform raised almost $900.000 but did not reach the minimum threshold. All participants will receive their contributions back. Subsequently, the team also failed to secure emergency financing. This brings an end to a project that raised a total of approximately $12 million in 2022 and 2023.

In brief:

• Linera is ceasing operations with immediate effect because the token sale did not reach the minimum threshold and emergency financing was not forthcoming.
• a16z participated in both investment rounds in 2022 and 2023, with the project raising a total of about $12 million.
• The team hopes to complete the protocol eventually, but provides no timeline.

Token sale did not reach minimum threshold

The Linera team announced the closure via Discord. The token sale on Sonar attracted almost $900.000 in commitments, but that amount remained below the required minimum for the sale to proceed. All contributions will be refunded to participants.

After the sale failed, the team focused on emergency financing to keep the project running until the launch of the mainnet. Those attempts also came to nothing, after which the decision was made to cease operations.

Founded by a former Meta researcher, backed by a16z

Linera was founded by Mathieu Baudet, a former researcher at Meta. In 2022 and 2023, the project raised a total of approximately $12 million across two rounds. a16z participated in both rounds. Other investors included Borderless Capital, GSR, Matrixport Ventures and Flow Traders.

The app is now being wound down, and the Discord server is also closing. Users’ point balances will be retained, but the team candidly warns that there are no guarantees that these points will be worth anything in the future. The team says it does not see the closure as a judgement on the technology or the team itself, but attributes it entirely to the lack of funding.

Future of protocol uncertain

The team does not rule out that the protocol will eventually be completed and that applications will be launched on it. However, it cannot provide a concrete timeline. When or how that might happen remains unknown for the time being.