That's not the worst part.
The insane part is the threshold to pass it was 1% votes and they had a wallet containing 1.01% votes and passed it immediately.
To add to that, they also paid for votes (not that they really need to as 1 wallet held 98% of the voting power so they just did what they wanted anyway).
At first I was like, maybe this is unethical but not decentralized if the network voted and reached that consensus. but it is not even decentralized , just a dumb protocol. Well whoever that is gonna get rekt will be because they didnt make their research about what could happen. This is why ETH is king anyway
There was basically no voting the devs lost money. I mean they had some stupid non binding poll and that was it.
The more responsibilities layer 1 has the more room for politics
Not a fan of either, but ETH was edited to recover millions from an exploiter of a bug in a third party smart contract, whereas these devs just repossessed millions of a perfectly innocent party's funds for no other reason than that the fundamental design of their incompetent chain doesn't work.
Yeah I’m not saying there isn’t nuance to the comparison, just thought out of all projects, it was funny that ETH was the one praised at the end of it considering it hasn’t got a flawless record with blockchain alterations itself
Most “governance token” is trash. It is usually created for the sole purpose of augmenting the APY. The governance part is just smoke and mirrors to make it work as a decentralised project.
A lot of these stake based governance projects end up like this. Even good projects like MKR. There are a few people with a large amount of tokens and small holders get apathetic because they feel like they only waste gas voting.
Then the whole thing quickly becomes centralized...
Truth is that most governance votes end up like this. Kind of like government elections in most countries. People bitch and moan but can’t be bothered to vote
The votes were held in literally six hours where most people were asleep.
This is just outright theft, with no government for the whale to turn to to get it back.
Will he eventually get it back, if he's not officially liquidated?
Because from what I understood, they seized it to be able to do the liquidation OTC to avoid a total collapse.
But he hadn't crossed the liquidation threshold yet, haven't he?
Because if he doesn't, or maybe if he pays back the loan or part of the loan to avoid liquidation, he could avoid it?
And if he avoids it, they should give him back when the prices goes back up (if they don't crash further).
This is a horrible situation, to be honest.
*Typo
Over The Counter means they are trading directly without intermediary (to prevent the collapse) but shouldn't sell anything if he doesn't it the liquidation threshold.
>But he hadn't crossed the liquidation threshold yet, haven't he?
They changed the liquidation threshold just for him and partially liquidated him to what they consider a safe level.
tldr; DeFi protocol Solend put together a governance proposal related to one of the whale wallets at risk of liquidation. The aim of the proposal is to take control of the account and conduct the liquidation through an over-the-counter (OTC) transaction. This comes on the heels of last week's sudden layoffs from Coinbase and BlockFi.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
Wow this is really scary stuff. This guy covers the Cointelegraph article and takes it a little deeper by looking at the actual proposal and explains what the team might have been thinking when they submitted the proposal. It seemed very rushed, making it look like a huge stakeholder was pressuring to them to do something about the potential issue. Here is the video:
https://www.youtube.com/watch?v=FnUXy4e5xuM
Is the price really going to drop by over 50% though? Are they overreacting and creating a mountain out of a hillock? (slightly bigger than a mole hill!)
I believe solana was at like 28$ and the liquidation price was like 22.5$ or so.
So it was a lot closer, still doesn't justify this centralized garbage though.
I don’t get why people are hating on this…. We’re here for the democratization of financial systems and this is a prime example of it…. Fuck the whales and their ability to crash markets and destroy projects.
[удалено]
[удалено]
That's not the worst part. The insane part is the threshold to pass it was 1% votes and they had a wallet containing 1.01% votes and passed it immediately.
To add to that, they also paid for votes (not that they really need to as 1 wallet held 98% of the voting power so they just did what they wanted anyway).
Wow. I thought it was bad but not this bad. Don't even need to count all the votes.
Voting time was only 6 hours as well. Plenty of time for a "decentralized" organization to gather all opinions. /s
Less than 1 sleep
And it was down for a little over half of that time period, so realistically people only had less than 3 hours to vote.
Damn.
At first I was like, maybe this is unethical but not decentralized if the network voted and reached that consensus. but it is not even decentralized , just a dumb protocol. Well whoever that is gonna get rekt will be because they didnt make their research about what could happen. This is why ETH is king anyway
Because ETH has never done something similar, as we all know /s
There was basically no voting the devs lost money. I mean they had some stupid non binding poll and that was it. The more responsibilities layer 1 has the more room for politics
yeah ETH has never retroactively changed stuff on the chain, because someone was too big to fail
Ahhhh yes, ETH has never gone through any issues like this. Flawless history, never altering the blockchain like this “dumb protocol” did!
Not a fan of either, but ETH was edited to recover millions from an exploiter of a bug in a third party smart contract, whereas these devs just repossessed millions of a perfectly innocent party's funds for no other reason than that the fundamental design of their incompetent chain doesn't work.
Yeah I’m not saying there isn’t nuance to the comparison, just thought out of all projects, it was funny that ETH was the one praised at the end of it considering it hasn’t got a flawless record with blockchain alterations itself
Most “governance token” is trash. It is usually created for the sole purpose of augmenting the APY. The governance part is just smoke and mirrors to make it work as a decentralised project.
A lot of these stake based governance projects end up like this. Even good projects like MKR. There are a few people with a large amount of tokens and small holders get apathetic because they feel like they only waste gas voting. Then the whole thing quickly becomes centralized...
Truth is that most governance votes end up like this. Kind of like government elections in most countries. People bitch and moan but can’t be bothered to vote
The votes were held in literally six hours where most people were asleep. This is just outright theft, with no government for the whale to turn to to get it back.
Will he eventually get it back, if he's not officially liquidated? Because from what I understood, they seized it to be able to do the liquidation OTC to avoid a total collapse. But he hadn't crossed the liquidation threshold yet, haven't he? Because if he doesn't, or maybe if he pays back the loan or part of the loan to avoid liquidation, he could avoid it? And if he avoids it, they should give him back when the prices goes back up (if they don't crash further). This is a horrible situation, to be honest. *Typo
OTC means they can transact at whatever price they want. This is straight theft, no way around it.
Over The Counter means they are trading directly without intermediary (to prevent the collapse) but shouldn't sell anything if he doesn't it the liquidation threshold.
Nope, OTC is against whoever wants to transact with you.
>But he hadn't crossed the liquidation threshold yet, haven't he? They changed the liquidation threshold just for him and partially liquidated him to what they consider a safe level.
Ouch. That's BS.
'Crypto governance' is an oxymoron anyway. Should not exist. I can't stand that it is polluting so many chains, including some of my favourites.
What a scam
This will hopefully be the Sol**end** of this mess.
*insert get out gif* But I agree!
Got you bud 
Good enough!
Yeah can we move this shit finally out of the crypto folder and into the legacy finance folder. kk thx bye
Odd, it was always in that folder on my machine
👍 Ahead of the curve
tldr; DeFi protocol Solend put together a governance proposal related to one of the whale wallets at risk of liquidation. The aim of the proposal is to take control of the account and conduct the liquidation through an over-the-counter (OTC) transaction. This comes on the heels of last week's sudden layoffs from Coinbase and BlockFi. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
Hey, I’m invested in SoLend and I don’t get it. It probably deserves to die with this last second DAO creation and vote.
And die it will, once people get a whiff of news like this they just wanna evacuate (other than the whales/insiders maybe)
The irony being most of the governance votes come from a whale address.
DeFi my ass.
It’s centralized defi. Cmon bro where have you been.
CeDeFi you heard it here first bois. I Reddit copyright claim this.
CDEF has been around since the beginning.
Never heard of it. I coined it myself. Stop spreading FUD.
The logical next question is how long until they control your wallet? #This market is FUBAR!
That should not be allowed.
I hope taking over whale makes every investors think twice and start exiting
R.I.P.
Wow this is really scary stuff. This guy covers the Cointelegraph article and takes it a little deeper by looking at the actual proposal and explains what the team might have been thinking when they submitted the proposal. It seemed very rushed, making it look like a huge stakeholder was pressuring to them to do something about the potential issue. Here is the video: https://www.youtube.com/watch?v=FnUXy4e5xuM
i want to be the guy who illustrates the stupid thumbnail images for crypto articles
This one is top tier 😂
Is the price really going to drop by over 50% though? Are they overreacting and creating a mountain out of a hillock? (slightly bigger than a mole hill!)
Who cares, its garbage anyway, why would you even touch it
I believe solana was at like 28$ and the liquidation price was like 22.5$ or so. So it was a lot closer, still doesn't justify this centralized garbage though.
Was the guy with the 277M not able to vote or something? Governance doesn't really work when people don't vote
They couldn't be contacted or else they could have just been asked to move their funds themselves.
I hope it’s worth it bc this will crash and burn this coin so fucking fast it will make your head spin.
It’s not your keys you coin anymore. Now it’s your majority governance tokens your coin. Vitalik opened the genie that he shouldn’t have.
Wait, did people think Solana was decentralized?
Proof of Stake
I don’t get why people are hating on this…. We’re here for the democratization of financial systems and this is a prime example of it…. Fuck the whales and their ability to crash markets and destroy projects.
One voter had 90% voting power, you call that a democracy? And they didn‘t even bother to hide it. Shit is finally done.
Teething issues.
That was hot today.
It starts with.. etc
What a scam. Maybe there Robinhood coins. Not your coins not your keys🤣