Solana’s future seems shady after sequence of scandals on community and large centralization drawback
The entire story with the “exemption” of a whale on Solend platform shook the entire cryptocurrency trade and raised huge questions concerning the decentralized nature of the entire DeFi industry.
The principle justification Solend selected for taking management of a pockets that’s not theirs was the large liquidation that would occur and put the complete community in peril as Solana is infamous for its fixed downtimes and community outages each time the slightest load seems.
The nameless whale who voted in SLND1 and once more in SLND2 has this to say publicly within the Solend Discord. pic.twitter.com/k2JMnWLwLO
— Solend (we’re hiring!) (@solendprotocol) June 20, 2022
So as to keep away from that, Solend launched a vote on the community, proposing to take management over the whale’s pockets and forcibly liquidate its place to keep away from dangers if SOL’s value plunges decrease. That was the second when every thing began wanting suspicious.
In accordance with on-chain information, a single consumer issued over 90% of the votes on the proposal. Basically, the destiny of $270 million of customers’ funds was managed by a single pockets, which matches in opposition to each precept of decentralization that the entire DeFi trade is rooting for.
Adverts
Afterward, the brand new voting began with a proposal to dismiss the earlier outcomes and take away the earlier voter’s contribution, who additionally spoke out within the Discord channel, stating she or he would moderately sacrifice $120 million of retail {dollars} as an alternative of placing the entire industry in danger to easily comply with the decentralization narrative and let somebody “gamble.”
The entire state of affairs as soon as once more reveals Solana’s drawback with centralization that will wreck the community’s future and development potential as even its greatest supporter, SBF, advised is his Twitter followers that the entire state of affairs is unacceptable, whereas being accused of “saving his luggage.”
