Solana’s future looks shady after series of scandals on network and big centralization problem
The whole story with the “exemption” of a whale on the Solend platform shook the entire cryptocurrency industry and raised big questions about the decentralized nature of all of DeFi industry.
The main justification Solend chose for taking control of a wallet that is not theirs was the massive liquidation that could happen and put the entire network in danger as Solana is notorious for its constant downtimes and network outages whenever the slightest load appears.
In order to avoid this, Solend launched a vote on the network, offering to take control of the whale’s wallet and forcefully liquidate its position to avoid risk if SOL’s price dives lower. That’s when it all started to look suspicious.
According to on-chain data, a single user issued over 90% of the votes on the proposal. Essentially, the fate of $270 million of users’ funds was controlled by a single wallet, which goes against every principle of decentralization that the whole DeFi industry is rooting for.
Later, the new vote began with a proposal to discard the previous results and remove the contribution from the previous voter, who also spoke out on the Discord channel, saying he or she would rather sacrifice $120 million. retail dollars instead of putting the entire industry at risk to just follow the narrative of decentralization and let someone “play.”
The whole situation once again shows Solana’s problem with centralization that may ruin the network’s future and growth potential as even its biggest supporter, SBF, told is his Twitter followers that the whole situation is unacceptable, while being accused of “saving his bags.”
