Terra Lost Two of its Largest Staking Firms

Paigambar Mohan Raj
Source: Pexels

Figment and Chorus One, two of the largest staking firms, have decided not to endorse the new Terra (LUNA 2.0) blockchain, expressing concerns about how the decision-making process was implemented.

Chorus One cited improper governance procedure on Terra’s part. The first reason for its rejection, as revealed by the company, was that staking on the network had been stopped at the time of the vote, and voting privileges had altered. The second reason was that during the voting, the major plan to restart the blockchain was changed.

As a result, according to a tweet, Chorus One abstained from voting, has shut down its old infrastructure, and has said that it will not support the new Terra blockchain.

Figment has also said that it would not be supporting the new blockchain at this time. They have no plans to support Terra 2.0 at launch but may do so in the future if they see it as a fresh opportunity.

On the primary proposal to rebuild the Terra blockchain, Figment voted “no with veto.”

The company stated in a blog post,

“The proposal has been unilaterally modified multiple times while the voting period was active, leading to a lack of confidence in the integrity of the vote itself.”

According to Figment, creating a new chain thus rapidly is not a viable option. It went on to say that Terraform Labs might still have a say in the new blockchain and that the corporation could face a slew of lawsuits shortly.

The company stated,

“These lawsuits could also pose unforeseen risk to infrastructure providers in the future.”

Due to changes made in the proposal during the vote, many have lost confidence due to the lack of integrity. However, the proposal was eventually passed.

Although the new Terra blockchain was set to go live today, the network stated that there would be a delay. The company revealed that the new chain would go live tomorrow, the 28th of May, instead.

Along with the launch, the impending airdrops have also been pushed to after the launch.