Crypto citizens of the Juno Network say they have discovered a “whale” who “gamed the fair stakedrop,” netting 2.5 million JUNO and prompting a governance proposal to burn most of the tokens.
Proposal 4 calls for the deletion of 90 percent of the whale’s JUNO, saying the network was centralizing due to the 2.5 million JUNO the whale received and staked to a single validator, Sentinel. Developers of Juno had implemented a whale-cap of 50,000 Juno per wallet but nobody expected someone to have this many wallets with 50,000 ATOM. Since the proposal was put up for governance vote, the whale has redelegated the 2.5 million JUNO across a wide swath of validators, decentralizing the network.
Many voices took to Twitter and Telegram saying the wallet should not be manipulated due to “bad optics” and the precedent it would set. Some say it goes against the crypto ethos. Others are in favor of burning the “ill-gotten” JUNO saying it is not too late to correct the mistake, comparing it to famous crypto forks such as Etherum Classic.
The proposal looks like it will fail by a large margin as 52.78 percent have voted no and only 7.16 percent have voted yes. The whale and others have abstained (39.35%) with three days left in the voting period.
In a Twitter post, Wolfcontract, Co-founder of Juno Network and SG-1 validator, said the whale reached out to him and claimed to be a fund managing Atom –and now Juno– for “dozens of individuals.”
In his tweet, Wolfcontract said the fund wanted to support the network and not hurt it.
“I will not disclose the persons name or fund to protect their privacy,” Wolfcontract tweeted. “The fund does not individually own any of these assets. They simply manage them for their clients. They are watching prop 4 and expressed that they respect whatever outcome on-chain gov brings.”
In wake of the “Whale incident,” Shade protocol announced an airdrop for stakers of LUNA, ATOM and SCRT, acknowledging that inspiration was taken from “hard lessons learned from other snapshots.”
The Juno Network bills itself as “a public permissionless network for interoperable smart contracts. Fast, secure and built for global adoption.”
Since the Juno mainnet went live on October 1, it has over $25,689,134 total locked value across the Sifchain and Osmosis DEXes. This has been accomplished with community contributions, no market makers and no initial coin offering.
