Constant network crashes Solana have been irritated by their community in recent months and, to avoid a new episode, the a whale’s funds will be confiscated. This situation generated controversy for the project, which feared being liquidated.
It all started after a whale fundraiser 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 so-called decentralized projects to freeze whales, especially after project problems.
Project confiscates whale funds for fear of collapsing Solana network
A new poll in a community of a lending project called Solend, which was created by the DeFi community of Solana, it was possible to see that a whale’s funds will soon be confiscated.
Indeed, the team behind the project tried to contact the whale on several occasions, including sending him chain messages, but never got a response. The project therefore sought with its community to confiscate funds from heavy users.
“Despite our best efforts, we were unable to get the whale to reduce her risk or even come into contact with her. With the way things are going with the unresponsive whale, it is clear that measures must be taken to mitigate the risk.
The Solend team fears the price of Solana could plummet to as low as $22 a unit, when chaos could ensue with project liquidations, all because of a whale.
According to the owners of the platform, “at worst, Solend could end up with bad debts and this could cause chaos, overloading the Solana network.“.
In the last 24 hours, Solana has appreciated by 10% and reached the price of US$35 per unit, which has not stopped 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 concerns 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 alone.
But with 97% of the vote, the Solend community called for action 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 resume the whale count so the settlement can run OTC and avoid pushing Solana to its limit. This would be done via a smart contract update. Emergency powers will be revoked once the whale count reaches a safe level.
Remember that in 2021, a project JUNO whale also suffered retaliation and the parts taken from his address ended up being lost by the team that was supposed to fix the problem.
In the case of Solend, this Monday (20), the team declared that it invalidated the vote on the first proposal by one second. Thus, the third must be presented with the same agenda, but with a voting period of 24 hours instead of 6 hours.
The SLND2 governance proposal was adopted.
SLND1 has been invalidated and governance voting time has been reduced from 6 hours to 1 day. pic.twitter.com/z0agJV9pOz
— Solend (we’re hiring!) (@solendprotocol) June 20, 2022
In the voting comments, not everyone was happy, even criticizing Solend’s supposed “decentralization”.