Solana Refutes Whale Wallet Takeover With Another Governance Vote

Sahana Kiran
Solana
Source – Pixabay

The crypto market has been through a lot this year. The fear is real, from several projects just crashing to the bears hounding the ecosystem. Now, adding to this anxiety, investors deal with the worry of Solana dropping down to zero.

Solana’s decentralized wing, Solend, made news on a calm Sunday evening after it rolled out a governance vote, “SLND1: Mitigate Risk From Whale.” Through this, the platform intended to withdraw liquidation power from a single whale wallet which entailed the ability to disrupt the market. As per the governance vote, across the over-the-counter [OTC] trades, nearly $20 million in SOL will be liquidated. While this plan gave Solend the capacity to temporarily control the whale wallet, the community wasn’t pleased.

The true ethos of the crypto-verse was originally decentralization. However, the onset of centralized systems forced the launch of the DeFi space. Solend, a DeFi lending platform, was meddling with what the area stands for, enraging the community and triggering another governance vote. This time, to invalidate the first proposal.

Titled “SLND2: Invadlidate SLND1 and Increase Voting Time,” the proposal went live a couple of hours ago and even garnered a green signal.

However, it didn’t mean Solend wouldn’t take control of the whale wallet. The second proposal invalidates the first one and has extended the voting time to one day.

In addition, the firm also intends to formulate a new proposal that does not involve emergency powers to take over an account.

Is one day enough to decide the fate of Solana?

Certainly not. Even Solend agrees. The platform, in its recent governance vote, said,

“We recognize that a voting time of 1 day is still short, but we need to act swiftly to address the systemic risk and fact that normal users can’t withdraw USDC. We ask our community to be active in governance in the next few days. Voting time will be revisited in a future proposal.”

However, Solend tweeted that the anonymous whale had voted yes on the second proposal.

Meanwhile, Solana was up by 13.91 percent over the last 24 hours. At press time, the altcoin was trading for $33.52.