Mozilla laid off everyone they had working on it. The project is still going on a volunteer basis, but it's obviously not progressing anywhere near as quickly as it was when it had people working on it full time.
Some parts of it, the parts that were production-ready, were merged into Firefox years ago and live on there. Other parts that weren't production-ready were canned and the staff laid off.
jsheard|1 year ago
dralley|1 year ago