Lido Finance refused to support the new Terra 2.0 blockchain

A total of 54 million Lido management tokens (LDO) voted against it, and only 3,1 million voted in favor

25.05.2022 - 15:10

568

2 min

What’s new? The Decentralized Autonomous Organization (DAO) of the DeFi-project Lido Finance decided not to support the new Terra 2.0 blockchain after its creation. As of May 25, 95% of the voters rejected the idea of support. .

Information on the Snapshot website

What is known about Lido Finance? It is a liquid staking protocol that does not require running nodes, locking assets, or involvement in maintaining infrastructure. Ethereum, Solana, Kusama, and Polygon networks are available for staking with Lido. Previously, a separate protocol for staking was available on the Terra blockchain. The Terra ecosystem was its second largest platform after Ethereum and was valued at $10 billion before its collapse.

What happened before? On May 23, Terra representatives revealed that the proposal to revive the ecosystem would not involve a hard fork. Instead, a new Terra 2.0 (LUNA) blockchain would be created, with no shared history with the old Terra Classic (LUNC) network. If the proposal is approved, assets and decentralized applications (dApps) will need to be transferred to the new blockchain.

Earlier, British blogger, KSI, reported that he lost $2,8 million on the collapse of the Terra (LUNA) token rate. For the same reason, cryptocurrency exchange Binance lost $1,6 billion in unrealized profits, and venture capital fund Hashed lost more than $3,5 billion.

On May 19, South Korea’s Tax Service accused Do Kwon and the company he founded, Terraform Labs, of evading more than 100 billion won ($78,4 million) in income and corporate taxes.

Read more about the events related to the collapse of the Terra ecosystem in the GetBlock Magazine article.

Author: