KongSwap’s decision to shut down on April 6 has raised new questions across the Internet Computer community about who really controls projects that describe themselves as decentralised.
The KongSwap team announced the closure on March 27 and told users to remove liquidity positions, withdraw tokens and clear their Internet Identity accounts before the platform goes offline. The post quickly gained attention, drawing around 25,900 views within hours.
The team provided little explanation for the closure and only suggested that KONG could return at some point in the future. The lack of detail left many users frustrated and uncertain about what comes next.
KongSwap launched in late 2024 as a decentralised exchange on the Internet Computer, offering token swaps, liquidity pools and token listings through a single canister model. It gained attention for using Chain Fusion technology, allowing users to swap native Bitcoin, Ethereum and Solana assets without relying on bridges or wrapped tokens.
The platform built a loyal following among ICP traders and was often viewed as one of the ecosystem’s leading decentralised exchanges alongside ICPSwap and ICDex. KongSwap was also regularly used as a reference point for ICP pricing and on-chain trading activity.
However, activity on KongSwap had slowed in recent months. CoinGecko data showed the platform’s 24-hour trading volume had dropped below $100 in recent weeks. (coingecko.com)
The closure has raised concerns because there was no on-chain vote before the announcement. Some community members believe that if a team can close a DAO-linked project without formal approval from token holders, decision-making may still be concentrated among a small group.
OhShii Labs pointed to the way voting power can build around developers when token holders delegate to the same neuron. The group said liquid democracy can still lead to a small number of people holding most of the influence, even if the system appears decentralised on paper.
Others focused on control over assets linked to the project. Community member Snassy argued that decentralisation should include ownership of source code, repositories, social accounts and communication channels. Snassy also criticised the reported removal of KongSwap’s GitHub repository, saying open source code tied to a DAO should not disappear without proper approval from token holders.
The issue has highlighted a wider challenge for many SNS projects. While treasury funds and proposals may be controlled on-chain, many off-chain assets are still held by teams or individuals. There is currently no common framework for SNS DAOs to directly own GitHub repositories, X accounts or email infrastructure.
Reaction from the community was mixed. Some users questioned what would happen to investors, while others blamed poor capital allocation and questioned whether too much money had been spent without enough ICP being locked into the project. There were also concerns that some ecosystem projects continue to rely too heavily on small teams rather than broad community ownership.
Some users responded with frustration, while others appeared resigned to the closure. Several comments thanked the team for earlier airdrops and support, though many users expressed disappointment that the platform was shutting down without more warning.
The timing of the closure has also led to concerns around withdrawals. One user claimed they removed around $7,000 from the MAPTF and ICP liquidity pool but only received the ICP portion, leaving roughly $3,000 in MAPTF missing. It remains unclear whether this was caused by a delay, a wallet issue or a broader withdrawal problem linked to the shutdown process.
Other users reported wallet connection problems, missing balances and login issues while trying to move assets off the platform. Some said they managed to fix the problem by resetting Internet Identity sessions, checking hidden subaccounts or using incognito mode.
KongSwap’s own documentation advises users to sync balances, refresh wallets and manually manage tokens if funds do not appear correctly. The platform has also previously noted that liquidity positions are stored directly in stable memory rather than through standard LP tokens.
With KongSwap shutting down, traders are expected to move towards ICPSwap, ICDex and Sonic, which continue to operate.
ICPSwap remains the largest automated market maker on ICP in terms of liquidity, while ICDex uses an order book model that gives traders a more centralised exchange-style experience. Sonic also remains active as another decentralised trading venue within the ecosystem.
For users still holding liquidity positions or tokens on KongSwap, the deadline is approaching quickly. April 6 is the final day to remove funds before the platform closes completely.
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