Solend Community Reverses Decision on Whale Account Management

As a result of a new vote, the Solend community, a Solana-based crypto-lending protocol, overturned the previous decision to control a whale’s account.

Governance proposal SLND2 has passed.

SLND1 has been invalidated and governance voting time has been increased from 6 hours to 1 day. pic.twitter.com/z0agJV9pOz

— Solend (we’re hiring!) (@solendprotocol) June 20, 2022

On June 19, the Solend team put SLND1 to a vote to introduce special margin requirements for large users. The developers also asked to grant them temporary powers to manage the whale’s account, which accounts for 95% of all deposits in Solana (SOL) and 86% of loans in USD Coin (USDC).

The measures were prompted by concerns about a potential cascading decline in SOL’s price as positions were liquidated.

Five and a half hours were allocated to the vote, and the proposal received support DAO of 97.5%.

However, within a day, the team brought SLND2 to consideration, which includes:

• the repeal of the previous proposal;
• an extension of the voting period to 24 hours;
• the development of measures that do not provide for extraordinary powers to control accounts.

“We listened to your criticisms about SLND1 and how the voting was conducted. SOL’s price had been rising steadily, which gave us time to gather more feedback and consider alternatives,” the team said.

Support for SLND2 stood at 99.8% of votes.

On June 18, SOL’s price dipped below $28, but in the following two days rose above $35 (CoinGecko). The liquidation threshold for whale positions stands at $22.27.

The developers acknowledged that a 24-hour vote is still “not enough.” However, they argued that “we must act quickly to mitigate systemic risk.”

The team noted that the whale itself supported both proposals. It urged as soon as possible to develop SLND3 with a “better solution,” given that the market “changes constantly within 24 hours.”

The anonymous whale who voted in SLND1 and again in SLND2 has this to say publicly in the Solend Discord. pic.twitter.com/k2JMnWLwLO

— Solend (we’re hiring!) (@solendprotocol) June 20, 2022

Solend urged users to take an active role in governance in the coming days.

As ForkLog explained in cards, what a DAO is and how it contributes to the decentralization of governance.

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