Karma3 Labs reports that the decentralized reputation protocol OpenRank will cease operations, leading to the immediate termination of the platform. Founder Sahil Dewan disclosed that the organization will return all remaining capital to investors while releasing the underlying code, protocols, and documentation as fully open-source assets. This decision follows the inability to establish a scalable business model, despite the protocol previously enabling reputation scoring for entities such as Farcaster, Lens, and MetaMask Snaps, alongside the distribution of more than $50 million in incentives.

Concurrently, records indicate that Karma3 Labs secured $4.5 million in funding on March 1, 2024. The investment round was led by Galaxy and IDEO CoLab Ventures, with participation from Spartan, SevenX, HashKey, Flybridge, Delta Fund, Draper Dragon, and Compa Capital. The shutdown marks the end of a significant infrastructure layer for decentralized identity verification.