Last week, Juno Network, a Cosmos-based blockchain that lets different smart contracts interact with one another, was faced with a rather controversial decision.
It’s not a large or super well-known project, but this specific decision has already made ripples throughout DeFi.
Proposal 16 asked the community of JUNO token holders whether the wallet of one community member should have a large chunk of its token holdings removed (and returned to the community pool or destroyed entirely).
The specific amount they wanted to take back was 3,103,947 JUNO tokens, worth $117,205,038 at press time.
The reason? The address in question allegedly gamed a recent airdrop (well, technically, a “stake drop”) within the Juno Network. And in so doing, the address accumulated an exorbitant amount of JUNO tokens, which, like almost all DeFi tokens these days, come with voting powers.
The risks of not passing this proposal, according to the proposer, were myriad.
First, the proposer indicated that the fact that there was a single wallet in the ecosystem that “already has half of quorum” needed to pass votes should have been a significant cause of concern.
Second, with that amount of tokens, the holder could have also “single-handedly [wiped] out the entire DEX liquidity in 10 minutes or less.” This basically means this one JUNO whale could completely destabilize various crypto markets trading the JUNO token.
Third, the whale had considerable power to bribe validators (crypto speak for entities verifying and…