Curve's founder and CEO Michael Egorov now controls 71% of the popular decentralized exchange's governance voting power.
In what appeared to be an attempt to counteract the 50%+ voting power of the yEarn protocol, Egorov, in his own words, "over-reacted" and locked up more CRV than he intended, significantly shifting the power in his favor.
To vote on proposals to Curve, CRV token holders must lock up their tokens and get veCRV in return. veCRV represents one's voting power on Curve. Users can lock up their tokens for different periods. The longer a user locks up their tokens, the more voting power they have.
[caption id="attachment_75798" align="alignnone" width="1538"] Source: Curve[/caption]
"Since founder rewards are significantly higher than LPs and other voters, pretty much locked everyone else out. So guess voting is pointless now," yEarn founder Andre Cronje explained on Twitter.
The Curve team is now encouraging its token holders to lock up their CRV to bring balance to the current voting structure. Currently, only 6.7% of the total circulating supply of CRV is being locked for voting.
Editor's Note: Updated with more details about voting power
© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.