Holders of Aave, the token that underpins its namesake’s decentralized finance (DeFi) protocol, are taking part in a governance vote that will decide whether 1,600 ether (ETH) in the protocol’s treasury will be converted to wrapped staked ether (wstETH) and rocket pool ether (rETH).
Aave’s Decentralized Social Media Platform Lens Protocol Releases New Governance Model
Lens Improvement Proposals (LIPs), which is inspired by Ethereum and Aave, is an attempt to create a framework for developers, creators and users to participate and have a voice in the decision-making process of Len’s future development.
MakerDAO Weighs Ditching $390M of Gemini Dollars from DAI Reserve
The result could have a significant impact on Gemini and its stablecoin as MakerDAO’s reserve holds roughly 88% of total GUSD supply.
Health and Fitness App Sweat Economy to Vote on ‘Reallocating’ 2.5B Inactive Tokens
The 2.5 billion SWEAT tokens, which constitute around 13% of the total supply, were allocated to users at the app’s conception last September.
Synthetix Community Approves Plan to Nudge Positions Off Soon-to-Shut Version One of Its Perpetuals Market
The market, which was replaced by a new version, has been in close-only mode for months, but about $150,000 remains on the original platform.
Bankruptcy Claims Exchange OPNX Issues New Governance Token, FLEX Rises 16%
Bankruptcy claims exchange OPNX has issued a new governance token that is designed to reduce trading fees on the platform.
a16z releases anonymous voting system for Ethereum
The system uses “time-lock puzzles” to encrypt the contents of votes, making them unreadable until balloting has finished.
Tensions Rise Between SushiSwap, Lido Over Return of Exploited Funds
Two decentralized finance projects are butting heads over a governance proposal that could see the recovery of 40 ETH stolen in Sushiswap’s April hack.
Web3 Infrastructure Company Upstream Launches ‘Learn and Earn’ DAO Course
To enroll, students must mint a “DAOphin” NFT by Process Grey, the artist behind the popular Goblintown collection.
Tornado Cash (TORN) Suffers 27% Drop As Hackers Strike
Tornado Cash (TORN) has experienced a sudden fall in its market price over the last few hours following news of the DeFi protocol suffering a crypto exploit late yesterday. According to data from CoinMarketCap, Tornado Cash is down 28.25% in the last 24 hours, albeit this only represents a retraced value.
Following news of TORN’s attack, the token initially dropped by over 60% before finding support around the price region of $3.86. Since then, TORN has made some upward movement, however not sufficient to cover up the earlier loss.
TORN Governance System Breached: $2M Stolen
Through a malicious governance proposal, a hacker gained control of Tornado’s Cash Governance, allocating 1,200,000 votes to themselves.
According to Chinese reporter Colin Wu, the hacker used their newly gained control to move a total of 483,000 TORN out of the Tornado Cash governance vault worth about $2 million at the present market price of $4.5.
The hacker then proceeded to deposit 6,000 TORN on the Bitrue exchange and swapped the remaining 379,300 TORN on-chain for 375ETH. Currently, there has been no official statement from Bitrue on this development.
The Tornado Cash attacker obtained a total of 483,000 TORN from the Tornado Cash governance vault, and has deposited 6,000 TORN into Bitrue; sold 379,300 TORN on the chain and exchanged it for 375 ETH (about 680,000 U.S. dollars). The price is US$1.8; there are still 97,700 TORNs…
— Wu Blockchain (@WuBlockchain) May 21, 2023
Meanwhile, all TORN investors have been urged to withdraw all their governance-locked funds from the project developers. In addition, the Binance exchange has suspended TORN deposits pending a solution to the governance issue.
Due to circumstances surrounding the protocol, #Binance will temporarily pause $TORN deposits until further notice.
— Binance (@binance) May 21, 2023
For now, it remains unknown how long it may take for TORN developers to regain control of the governance system and perhaps recover the stolen loot. Thus, TORN investors are advised to keep a close watch for any latest development.
At the time of writing, TORN is trading at $4.5, with a 1.5% gain in the last hour. Looking at its broader performance, the DeFi token leaves much to desire, with 30.6% and 48.9% losses in the last 14 and 30 days, respectively.
Tornado Cash Becomes Target Of Crypto Hacker
Interestingly, prior to yesterday’s heist, Tornado Cash had played a different role in crypto heists rather than being the target.
The TORN protocol operates as a decentralized, non-custodial cryptocurrency tumbler that mixes “potentially identifiable or tainted cryptocurrency funds with others” so as to cover the original trail of such funds.
Due to this service, the DeFi project served as a “money laundering” tool in a couple of crypto heists, most notably the $625 million Ronin exploit in 2022.
About 2000 ETH – valued at nearly $2 million then- of the loot were moved to Tornado Cash following the heist. Following this event, TORN was blacklisted by the U.S. Office of Foreign Assets Control (OFAC), banning all U.S. citizens from engaging with the protocol.
Other popular heists involving the use of Tornado Cash in moving part of the stolen funds include the recent $200 million theft from Euler Finance and the $28 million Derbit hack in 2022.
Lido Community Weighing On-Chain Vote to Deploy Version 2 on Ethereum
If the governance vote passes, the latest iteration of Lido will come to the Ethereum blockchain, Lido’s biggest market.
Terra Classic Hopefuls Mull Revival of Failed UST Stablecoin
Community members are vying for a new model to improve revenues to sustain the peg, which includes token buybacks and fees paid on peg deviations.
Lido Considers Using Its ARB Airdrop to Boost Activity on Arbitrum
A new proposal would see Lido accept its $1.2 million in ARB tokens and reward them to liquidity providers in wrapped staked ether pools.
Decentralized App Sweat Economy Introduces One-Person, One-Vote Governance System
The move-to-earn project aims to introduce what it says is a fairer system ahead of a vote to guide the protocol’s spending of 100 million SWEAT tokens.
Euler Finance Community Weighs Plan to Return Money Recovered From $200M Hack
The goal of the proposal is to let Euler users redeem their funds as soon as possible.
Arbitrum poses new governance proposals after community furor
The Arbitrum Foundation has made a couple of new governance proposals following the fracas that occurred over its original.
Arbitrum Foundation Offers Crypto Governance Concessions After ARB Holder Uproar
Arbitrum Foundation pledges not to move remaining 700 million ARB tokens without DAO approval of new proposals.
Arbitrum Governance Fracas Reopens the Question: Why DAOs?
The messy governance dispute involving a major Ethereum scaling system shows “communities” of token holders have power. But how should that power be distributed?
Arbitrum to break up governance votes after community backlash
The Arbitrum Foundation has backtracked on a controversial proposal and ratification vote that gave it control of a huge chunk of tokens.
Arbitrum Foundation Scraps Vote, Pledges Redo After ARB Tokenholders Revolt
The Arbitrum Foundation issued a mea culpa after its contentious premiere governance vote backfired.