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Juno network, a blockchain-based on Cosmos that allows different smart contracts to interact among themselves, went through a controversial decision last week. The project isn’t quite well-known, however, this specific decision has created waves in the DeFi space.
Proposal 16 took the opinion of JUNO token holders on whether a large part of token holdings should be removed from the wallet of one community member, and swiftly made its way back to the community pool and completely destroyed it.
To be specific, the exact amount they wished to take back was 3,103,947 JUNO tokens, worth approximately $117,205,038 at the time of writing.
A recent airdrop, or technically speaking a “stake drop” within the Juno Network, is the reason behind the decision as stated by the address in question. In the process, the address acquired a significant amount of JUNO tokens, which come with voting powers just like other DeFi tokens.
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According to the proposer, there could be multiple reasons for not passing this proposal.
The first reason as the proposer indicated is that there was just a single wallet in the ecosystem and that the existence of a single wallet in the ecosystem that “already has half of the quorum” required to pass votes should have been causing for alarm.
With that amount of tokens, the holders could alone wipe out the entire DEX liquidity in the span of just 10 minutes or even less, which is the probable second reason. It basically translates to a single JUNO whale holding the potential of destabilizing the different cryptocurrency markets trading the JUNO token.
The third is the power whales have to bribe validators and ignite fraudulent behavior.
At last, the proposer adds that if it wasn’t clear, the present situation triggered concerns in the community.
The Juno community seemed to be persuaded by these arguments, with “yes” votes winning the most votes, however, it was a close fight. A close look at the Twitterverse showed the polarizing effects.
One Juno ambassador went as far as to calling the entity “a worse version of a VC.” and a “ticking time bomb,” in a thread.
On the other hand, contrasting views emerged calling the vote “a dangerous precedent.”
Now, since the vote is passed, the Juno team will revoke a major chunk of whale’s taken, mitigating its wealth from 3.1 million to 50,000 JUNO, it would be interesting to witness how it will take place functionally on-chain. It is being speculated that through a new ledger, the DAO will fork the chain and a new balance for the larger Juno address. There’s now even a draft proposal on these next steps here.
Meanwhile, the Twitterati and crypto media are speculating about the various implications of this vote.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
