[Xangle Briefing] TRON’s internal conflict surrounding the acquisition of Steemit intensifies
[Xangle Briefing] TRON’s internal conflict surrounding the acquisition of Steemit intensifies
https://xangle.io/project/TRX/disclosures/5e4753a7aff4861386c1e80c
Chinese blockchain platform TRON is showing signs of internal conflict after its acquisition of blockchain based social media service Steemit. The conflict revolves around the token share ownership between acquisitors and the opposers against the acquisition.
According to crypto disclosure platform Xangle, Steemit joined the Tron ecosystem on February 15th. The acquisition was announced after.
However, it seems that only a few people including Steemit founder Ned Scott agreed upon such matter, resulting in the reversible soft fork by the rest of the Steemit team. The soft fork limited Tron’s influence on Steemit.
After the incident, major exchanges including Binance, Huobi, and Poloniex participated in the transition by using STEEM tokens in their custody and delegating their votes to accounts connected to Justin Sun. This led to blockchain industry leaders including Vitalik Buterin raising suspicions about the lobbying of Justin Sun. Allegedly, Tron has overruled its opposer’s efforts to limit its voting power by using its relationship with major exchanges.
The incident clarifies three characteristics that exists in the crypto market:
1.Token ownership is essential in making decisions within the blockchain network
Although Justin Sun had the right to make internal decisions, such as acquiring Steemit or electing a new CEO, he could not take control of the blockchain network.
Delegated Proof-of-Stake Consensus (Dpos), a centralized consensus system?
Dpos Consensus is a voting system that allows token holders to delegate their rights to a selected few. Due to the nature of the Dpos consensus, the minorities in Steemit team was able to operate a softfork.Did exchanges use their customers' coins to delegate voting rights without permission?
Vitalik Buterin stated in his twitter account that major exchanges used their customers’ coins (without their consent) to attack STEEM Dpos. In the traditional finance market, Securities operate what is called ‘stock loan transactions’ to lend stocks held by individual investors. These borrowed stocks are then used as a means of shorting or hedging. If Vitalik’s words were to be true, such actions can be seen as a stock loan transaction but without the proper loaning process.
It seems that Exchanges will have to develop a voting system for their customers to maintain the philosophy of blockchain: decentralization.
Meanwhile, Justin Sun agreed to open a townhall meeting on the 6th of March.
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