Victor Ugochukwu · Dec 14, 2020 . 5min read
Curve’s 71% of the Voting Power is Held by its Founder Michael Egorov
Curve's founder and CEO, Michael Egorov, now controls 71% of the popular decentralized exchange's governance voting power.
By Komal Joshi · Aug 24, 2020 . 5min read
Curve’s founder and CEO, Michael Egorov, now controls 71% of the popular decentralized exchange’s governance voting power. Curve is an Ethereum-based DeFi liquidity pool and exchange platform. It enables its CRV governance token holders to lock up their tokens to earn a separate voting token, veCRV. Holders can then utilize veCRV to vote on the Curve DAO’s network proposals. Token holders with high veCRV can even offer their suggestions for reflection.
Voting Process on Curve’s Protocol
To vote on Curve’s proposals, CRV token holders must lock up their tokens and get veCRV in return. veCRV symbolizes one’s voting power on Curve. Users can lock up their tokens for varying periods. To prevent the 50%+ voting power of the yEarn protocol, Egorov, in his own words, “over-reacted” and locked up more CRV than he thought, prominently driving the power in his favour. Thus, Egorov said on Telegram that he ended up with majority voting power by outweighing Yearn.finance.
The issue with 50%+ voting power that yearn.finance should have addressed is something that Curve’s founder remedying for. Increased governance voting power with one or few users leads to centralization and biasness. DeFi OG’s like Andre Cronje of yearn weighed in his opinion on Twitter.
However, The Curve team is currently promoting its token holders to lock up their CRV to return balance to the recent voting structure. Recently, the total locked circulating supply of CRV is 6.7%.The Curve team is optimistic that the balance of power will even out in the days ahead. “Over the next few days, as governance kicks off and the vote locking boost is enabled, we expect to see a large growth of vote locked CRV to begin the process of decentralizing the Curve protocol,” Charlie Watkins, project lead at Curve, told Decrypt.
Conclusively, Curve team is certain to bring about a balance soon in terms of the voting and governance. It is encouraging the users to lock their votes. Meanwhile, Egorov plans to hold back on voting. Therefore, that also means the community needs to collectively resolves the issue or find a permanent fix in order to avoid this in future.
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