Sun. Jul 3rd, 2022
Solana crypto community wants to confiscate whale funds

The constant crashes of the Solana network have been the target of irritation by its community in recent months and, to avoid a new episode, the funds from a whale will be confiscated. This situation generated controversy for the project, which feared being liquidated. It all started after a whale fundraised on the Solend lending platform, with a deposit of 5.7 million in Solana (SOL). Automatically, she became the biggest user to use this platform. In recent years, it has become common for supposedly decentralized projects to freeze whales, especially after project problems.

Project confiscates whale funds in fear of crashing Solana network

A new poll in a community of a loan project called Solend, which was created by Solana’s DeFi community, it was possible to see that a whale’s funds will be confiscated soon. That’s because, the team behind the project tried to contact the whale several times, including sending him onchain messages, but never got a response. The project then has sought with its community to confiscate large user funds.

“Despite our best efforts, we were unable to get the whale to reduce its risk or even come into contact with it. With the way things are trending with the whale unresponsive, it is clear that actions must be taken to mitigate the risk.”

The Solend team’s fear is that Solana’s price will plummet as much as $22 per unit, when chaos could ensue with project liquidations, all because of a whale. According to the platform owners, “at worst, Solend could end up with bad debts and this could cause chaos, overloading the Solana network.“. In the last 24 hours, Solana appreciated 10% and reached the price of US$ 35 per unit, which did not stop the community from voting to take action against the whale.

The platform’s first proposal filled with controversy

Solend’s first public proposal to be approved with its community has to do with the whale that scares users. Thus, they should vote “Yes” if they want action taken against the whale, or “No” if they want to leave it all alone. But with 97% of the vote, the Solend community called for action to be taken against the whale. One of the possible actions would be for the project team to take over the whale account, an attitude never seen in the cryptocurrency market.

“Grant emergency power to Solend Labs to temporarily take over the whale account so the settlement can run OTC and avoid pushing Solana to her limit. This would be done via a smart contract update. Emergency powers will be revoked once the whale account reaches a safe level.”

It is worth remembering that in 2021, a whale from the JUNO project also suffered reprisals and the coins taken from its address ended up lost by the team that was supposed to solve the problem. In the case of Solend, this Monday (20), the team said that it invalidated the vote on the first proposal with a second one. Thus, the third must be presented with the same agenda, however, with a voting period of 24 hours instead of 6 hours.

In the voting comments, not everyone was happy about this, even criticizing Solend’s supposed “decentralization”.