The developers of the Venus Project lending protocol on the Binance Smart Chain cancelled the vote to hand the project to an external team. This was disclosed by Compound founder Robert Leshner.
🚨 THE FIRST HOSTILE TAKEOVER OF A PROTOCOL HAS OCCURRED 🚨https://t.co/kghWyyEPlH
— Robert Leshner (@rleshner) September 17, 2021
Venus Project — analogue of Compound on Ethereum. The project uses a decentralised governance model whereby token holders vote to approve changes to the protocol.
Update: the ‘Venus: Deployer’ address unilaterally cancelled the proposal following this tweet (they have that power?)https://t.co/dySCfKv6IT
— Robert Leshner (@rleshner) September 17, 2021
The Team Bravo group held a vote on granting it authority to develop the protocol and distribute tokens. The organisers requested 1.9 million XVS (~$60.8m) of funding, of which 900,000 XVS (~$29m) were promised to be distributed among supporters.
“Interesting proposal. They directly bribed participants who voted for them,” wrote Leshner.
The proposal was supported by 1.29 million votes, and 1.19 million were opposed. Team Bravo pledged to “increase and maintain a high price for XVS for investors.”
The address used to deploy the Venus Project contract cancelled the voting results. The decision demonstrated control over the protocol by its creators, despite the decentralised governance model.
In September, the Cream Finance DeFi protocol hacker reimbursed most of the funds stolen in the recent attack, totalling 5,152.6 ETH (~$17.6m).
Read ForkLog’s Bitcoin news in our Telegram — cryptocurrency news, prices and analysis.