The Curve founder has seized 71% of the curve DAO voting power as the move came from the overreaction to Yearn.Finance attaining about 58% of the voting power so let’s read more in today’s altcoin news.
The decentralized part of the decentralized finance came into question today as the Curve founder and CEO Michael Egorov took more than 71% of the voting power of the platform. The Ethereum-based DeFi liquidity pool and exchange platform lets holders of the CRV token lock up their tokens to obtain a separate voting token.
The holders can use their tokens to vote on the network proposals that were submitted through the Curve DAO and those with a higher amount can submit their own proposals for consideration. Since the launch of the token, only a small fraction of the holders have vote-locked their coins leaving addresses with a huge amount of voting power. Egorov said that only 6.7% of about 10 million CRV tokens that are in circulation are vote locked which is an indication of how few token holders are participating in the DAO.
Update; 0x32d0 is also founder, so that's 71.01% + 8.79%.
Quorum is 30%, so can't abstain, has to vote other wise quorum isn't reached.
— Andre Cronje (@AndreCronjeTech) August 23, 2020
This made it quite easy for the address controlled by the yearning.finance platform which runs the Curve liquidity pool, to obtain the proportion of the voting power. By trying to counter this, Egorov extended a vote lock for 621,860 CRV tokens under the single address that are netting him about 618,568 veCRV or about 71% of the voting power. Egorov holds 60% of the voting power as the community edged him out and now has full control over the outcome of any proposals that were submitted to the DAO.
There is a proposal on our Discord:
while formal voting power is skewed (hopefully not for long) – use that power to vote in accordance with the community soft-vote (similar to governance polls in Synthetix) for that part of voting power.
— Curve (@CurveFinance) August 23, 2020
Egorov said that he ended up with most of the voting power by trying to outweigh Yearn. Finance but that it was an overreaction to which he apologized:
“Terribly sorry. Let’s fix that. I mean, I can abstain from voting but better to fix it in a proper way. Right now, looks like everyone else [is trying] to add some more voting power. Which is… the eventual intent.”
In the meantime, if Egorov wants to hold back on the voting, this means that nobody else’ vote matters until the community resolved the issue or there’s another permanent fix. Andre Cronje, the founder of Yearn.finance, calculated that 150 million CRV which is more than 15x of the supply will need to be locked up for a week to achieve the required veCRV to reduce the voting power of Egorov.
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