$1 Billion Value Locked: Curve (CRV) Founder Takes 71% of Voting Power

CRYPTONAIRE WEEKLY

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$1 Billion Value Locked: Curve (CRV) Founder Takes 71% of Voting Power

The decentralized nature of DeFi governance systems has come into the spotlight following the founder of one protocol seizing over 70% of its voting rights.

The ethos behind DeFi has driven a move to full community governance in a democratic and transparent environment. However, as Curve Finance recently discovered, things do not always pan out as planned.

In its first governance vote, Curve proposed a new liquidity pool for earning Compound’s COMP tokens and a couple of incentives for liquidity providers. However, according to Curve, only 6.7% of its native CRV token has been locked up for voting rights.

Curve voting power is calculated by multiplying the number of tokens by the lock time, with the maximum being four years. So, the longer they’re locked in, the greater the voting rights. These two factors have led to a couple of heavy-laden addresses holding the majority of the voting rights, one of them belonging to the founder.

Curve Founder Grabs Control

In an apparent effort to prevent a Yearn Finance liquidity pool heavy on CRV tokens from gaining over 50% of the voting rights, Curve founder Michael Egorov extended the vote lock on his huge stash of tokens to the maximum of four years in order to regain control.

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