The Venus Lending Protocol on Binance Smart Chain was virtually detected prior to the unique undertaking management crew stepped in and stopped the storyline, but it raised a enormous query of how to decentralize.
Venus (XVS) is a cryptocurrency lending platform on Binance Smart Chain, with an working model related to Ethereum’s Compound and MakerDAO. The Venus Project has a decentralized governance mechanism that enables token holders to vote to come to a decision on issues connected to the protocol.
Today (September 17), a person posted a proposal to give voting rights and handle undertaking money to a new crew, unique from the unique crew that formulated the undertaking. This new crew calls itself “Team Bravo” and says the new target will be “to raise and keep the price of XVS high for investors”.
🚨 THE 1st HOSTILE ACQUISITION OF A PROTOCOL Occurredhttps://t.co/kghWyyEPlH
– Robert Leshner (@rleshner) September 17, 2021
To do this, Team Bravo has stated that it will commit one.9 million XVS as financing, steadily unlocking itself more than five many years. Those who help the new proposal will also be committed by Team Bravo to allocate up to 900,000 XVS (well worth $ 29 million) as “rewards”.
This proposal was subsequently accepted with one.29 million votes in favor and one.19 million towards. However, the amount of addresses voting in favor is only sixteen, whilst the addresses are up to 39, which signifies that a smaller amount of end users with huge ownership of XVS tokens have teamed up to energy Team.Bravo.
However, shortly following the proposal was accepted, the “Venus Deployer” handle owned by the unique Venus advancement crew abandoned it.
Update: the “Venus: Deployer” handle unilaterally canceled the proposal following this tweet (do they have that energy?)https://t.co/dySCfKv6IT
– Robert Leshner (@rleshner) September 17, 2021
While recognizing the information of the over proposal is not in the project’s extended-phrase curiosity, as very well as plainly displaying that Team Bravo made use of income to get votes, unilateral action to phase in and cancel a proposal was dropped. a enormous query mark about how decentralization will work on Venus.
Venus has not nonetheless launched any official statement on the incident.
Binance Smart Chain has also been criticized in the previous for its centralization / decentralization concerns, when most of the nodes working the blockchain are below the management of the Binance exchange.
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