One voice can indeed make the difference: the famous formula chanted during election campaigns to encourage voters to go to the polls on election day. This incentive formula makes perfect sense at Curve; to defend democracy, it will have been necessary to establish a dictatorship, even if it is only apparently and temporary.
Egorov gets one vote and wins the elections
The founder of the DeFi platform Curve, Michael Egorov, would now control 3/4 of the platform’s votes. This step would have been carried out according to him, in order to counterbalance the progression of the platform. Yearn Finance who managed to get 58% of the votes.
Curve allows holders of its CRV token to participate in the governance of the project, subject to the placement of their CRV tokens in voting tokens veCRV : the holders of these can then submit proposals to the community.
Egorov revealed that since the launch of the token CRV, only a small proportion of the latter had been placed against voting tokens: of the 10 million CRV in circulation, 6.7% would have been traded, a rate indicating low participation – low interest in other words– buyers of CRV to the governance of Curve CAD.
It is then relatively easy for the most important players in the network to take control of the voting rights.
A silent voice
Michael Egorov admitted he had probably exaggerated and apologized on Twitter: he said his long-term goal was not to grab decision-making power but to establish a decentralized system.
In the meantime, he would have suggested that he could abstain from voting if necessary. For its part, the CEO of Yearn Finance, Andre cronje, commented that under such conditions, a vote was no longer useful: Cronje calculated that it would take 150 million CRV, or 15 times the current supply, to reduce the voting rights ofEgorov by 50%.
The team of Curve remains optimistic about a restoration of the balance of votes in the near future.
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Even Bitcoin (BTC) went through a phase of centralization at a young age, with a Satoshi Nakamoto controlling the network hashrate to protect his baby. Ergorov’s reaction may be exaggerated, but, admittedly, Yearn Finance also provoked it, grabbing more than half of the votes. We can only hope that Ergorov will behave like a good dictator!
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