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The two largest staking companies (Figment and Chorus One) will not support terra’s new blockchain, citing concerns about how the decision-making process was implemented.
Figment, which had $6 billion in assets under management in February (now likely much less), and Chorus One, which currently manages $1 billion in assets.
Chorus One said it would not support the new Terra blockchain because it “does not comply with the legitimate governance process.” The first reason that was stated was that online staking was frozen during the voting, and voting rights changed. The second reason was that the main proposal to restart the blockchain was changed during the vote.
As a result, Chorus One abstained from voting, scrapped its existing infrastructure, and said it would not support the new Terra blockchain.
Similarly, Figment has stated that it will not support the new blockchain. “We do not plan to support Terra 2.0 at launch and will decide to support Terra 2.0 later if we consider it as a new feature,” the report said.
Figment voted “no” with veto power over the main proposal to restart the Terra blockchain. A blog post said: “The proposal was changed several times unilaterally while the voting period was active, resulting in a lack of confidence in the integrity of the vote itself.”
Figment said it doesn’t see a quick launch of the new network as a solution. He added that Terraform Labs could still have an impact on the new blockchain and that the company could face a number of lawsuits in the near future.
“These lawsuits may also pose an unforeseen risk to infrastructure providers (such as Figment) in the future,” it said.
The new Terra blockchain is launched as a result of the collapse of the current chain. Its stablecoin TerraUSD (UST) lost its peg to the US dollar, which led to the collapse of the native token of the blockchain Luna (LUNA).
After the collapse, the governance of Terraform quickly changed, with Terraform Labs CEO Do Kwon proposing a new blockchain and putting it to a vote. The proposal was amended during the vote, raising concerns about its integrity.
Despite this – and a host of community and validator concerns – the proposal has been accepted and the new blockchain is due to be launched on May 28.
#Figment #Chorus #support #Terra
