Crypto Staking Firms Figment and Chorus Stays Away from NEW Terra Blockchain
Because of their reservations over the manner in which the decision-making process was managed, two of the most prominent staking firms have decided not to endorse the newly launched Terra blockchain. Figment and Chorus One are the two companies in question. Figment managed $6 billion in assets back in February, but that number is probably significantly smaller today. Chorus One is now responsible for managing $1 billion in assets.
The new Terra blockchain “does not follow a proper governance procedure,” according to Chorus One, hence the company has decided not to endorse it. The initial explanation that was provided was that, at the time of the vote, staking had been halted throughout the network, and voting rights had been reshuffled. The second reason was that the primary proposal to restart the blockchain had been modified while the voting was being conducted.
According to a message that was made on Twitter, as a direct consequence of this, Chorus One decided not to participate in the voting process, has begun winding down its current infrastructure, and has said that it will not be supporting the new Terra blockchain.
We decided to wind down our existing Terra infrastructure following the conclusion of this vote, and will not be joining the rebooted Terra chain as a genesis validator (in the event that this relaunch takes place).
— Chorus One (@ChorusOne) May 23, 2022
Figment, another company, has said the same thing, stating that it would not be supporting the new blockchain. On Twitter, the company replied, “We do not expect to support Terra 2.0 at launch and will make a choice to support Terra 2.0 at a later point, should we examine it as a new potential.” This was in response to a question about whether or not they will support Terra 2.0 in the future.
Figment cast their vote against the primary plan to rebuild the Terra blockchain with a “no with veto” vote. The statement was made in a post on a blog and read as follows: “The plan has been unilaterally updated many times while the voting session was active, leading to a lack of trust in the integrity of the vote itself.”
Figment said that it did not believe that building a new chain so rapidly was an appropriate answer to the problem. In addition, it was said that Terraform Labs may still wind up having some degree of control over the newly created blockchain, and that the firm might be subject to a variety of legal challenges in the not too distant future.
We do not plan to support Terra 2.0 at launch and will make a decision to support Terra 2.0 at a later date, should we evaluate it as a new opportunity
We regret having to make this decision, more on our reasoning here👇https://t.co/AITloklQ5s
— Figment (@Figment_io) May 25, 2022
“In the future, these lawsuits may potentially provide an unexpected danger to infrastructure suppliers like Figment,” it said.
After the failure of the previous chain, Terra is launching its brand-new blockchain as a direct response to the situation. Its stablecoin TerraUSD (UST) lost its peg to the US dollar, which led to a downward spiral for the native token Luna of the network (LUNA).
Following its failure, Terra’s governance underwent a dramatic change rapidly when the CEO of Terraform Labs, Do Kwon, proposed and put to a vote the implementation of a new blockchain. According to a report from The Block, the plan was changed in the middle of the voting, which is what prompted the questions regarding the validity of the proposal.
In spite of this, the proposal was approved, and the new blockchain is now scheduled to go live on May 28, having being moved back by one day. There were a number of issues raised by the community and validators.