A significant percentage of Curve voting power may have unintentionally been seized by the DeFi platform’s CEO and Founder, Michael Egorov. Reports noted that Egorov locked up more CRV to counteract an address that held over 50 percent of the platform’s voting power. However, his actions were rather overdone. This has probably locked out everyone else, except a costly action is taken.
Egorov now possess the most Curve voting power
The DeFi platform, Curve is a decentralized exchange (DEX) and liquidity pool designed on the Ethereum network. In order to vote for proposals on the platform, the users have to lock the governance token CRV. They would receive veCRV in return, which represents their voting right. However, only a few numbers of the token holders vote-locked their token, since launch.
Due to this, Curve voting power could easily be dominated by a whale, which is the case today, per se. More than 50 percent of the voting power was controlled by an address which belongs to Yearn.finance. To this extent, the founder of Curve hopped in with the intention of balancing the voting power. However, Egorov over-reacted as he admitted. Egorov
A costly mistake
Curve’s founder ended up having over 71 percent voting power of the popular decentralized exchange, although his initial intention was to counteract one address having significant voting power of the platform. He locked up more tokens for a long period, which perhaps awarded him more voting right.
The founder of yEarn, Andre Cronje, said:
“Since founder rewards are significantly higher than LPs and other voters, pretty much locked everyone else out. So guess voting is pointless now.”
Meanwhile, Cronje estimated that about 15x the current circulating supply of the token (i.e., 150 million CRV) must be locked for voting in about a week time in order to bring Curve voting power to the normalcy of 50 percent. At 33 percent, a network can be proposed while an update can be passed on the network at 50 percent.