Wonderland Co-Founder Abandons Criticized DeFi Project
The co-founder of decentralized finance project Wonderland is preparing to shut down after a vote that deeply divided the community.
On January 30th, Wonderland co-founder Daniele Sestagalli tweets that the test of the Avalanche-based reserve currency is coming to an end.
“The Wonderland trial is coming to an end. The vote clearly shows that the community is divided. The core and heart of Wonderland is still the community. If we can’t find a consensus on whether to continue or not, that means we’ve failed.”
The vote to save or end the project in phases comes after Sestagalli asked former Wonderland partner and chief financial officer Michael Patryn (who goes by the alias 0xSifu) to step down last weekend.
After several name changes, Patryn was accused on Jan. 27 of co-founding the now-defunct Canadian exchange QuadrigaCX, Bitcoin Magazine reported. He was also previously found guilty of credit card fraud and pled guilty to multiple related charges in the early 2000s.
There were some positive votes on the Wonderland admin forum, but votes to phase the project out and return the money to the owners stood at 55% for saving the project and 45% for disbanding at the time of writing. Sestagalli says the split led to a single path:
“The team’s mission is to carry out the will of the token holders. When the vote gets close to 50/50 there is only one way forward and that is a refund/withdrawal.”
He added that he is working with the team on a new proposal. However, supporters of maintaining the project point out that the community is not divided. surname recommend The token allocation failed to reach consensus, raising other concerns in the community.
“I’m open to hearing what you think so please don’t take this as FUD or hate, I just wanted to correct one thing here. The community will not be split 50-50, but token allocation. The community as individuals overwhelmingly voted ‘no’ and despite everything, it was difficult for us to win.”
Several alternative proposals were made to save the project. Eg, discussions Another looks at the merger of Wonderland and Abracadabra – DeFi lending protocol and winning strategy generator.
Additionally, on January 31, members of the community (commonly referred to as “frogs”) announced offer Extension for Wonderland 2.0, consider migrating the existing log and treasury to a new DAO structure with a more transparent governance system.
The issues in DeFi have rippled across the ecosystem, with other networks like Terra also feeling the effects. The close relationship between Wonderland and Abracadabra’s MIM (Magic Internet Money) token also impacts Terra’s ecosystem as the MIM is used for yield farming with the stablecoin UST on Terra.
This stablecoin recently fell below its peg due to concerns about Wonderland, which impacted the LUNA used for its price stabilization mechanism.
The price of LUNA is currently down 9.2% in the last 24 hours due to liquidation by investors. Meanwhile, Wonderland’s native TIME token is down almost 60% since the crash that began last week and is currently down 96.1% from its all-time high of Nov. 7 at $10,063.
TIME/USDT 4 hours | Source: Trade View
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