Short answer: No, we are not pausing the work on it and are continuing to build the proof-of-concept.
Long answer: Together with PsychedelicDAO, we looked into enabling canisters on the IC to maintain WebSockets with their clients. We started the collaboration by working out a design based on their initial proposal. As we wrapped up the design, PsychedelicDAO decided to shift their focus. We at DFINITY decided to continue the work on our own and turn the design into a proof-of-concept. We will post updates here as we make progress.
Finally, I would like to thank PsychedelicDAO for the collaboration, especially the engineers that worked with us on this.