Despite the large number of companies from the crypto sector that have voiced support for the new Terra blockchain, steaking companies Figment and Chorus One have taken the opposite position. Their disapproval has to do with Terra’s decision-making process and the way the company handles its problems.
Figment and Chorus One argue that the new network proposal underwent a change directly during the vote, prompting both leading staking companies to voice their displeasure with Terra’s blockchain on Twitter.
We have decided to phase out the existing Terra infrastructure after this vote and will not join the restarted Terra blockchain as a genesis validator (should the restart take place),” the Chorus One account wrote.
It also explains that the decision to avoid Terra serves two purposes. First, Terra’s new blockchain does not comply with the legalized governance process, and during the voting process, the network’s staking was frozen. This affected voting rights.
The second reason is that the proposal was amended during the voting process. As a result, Chorus One abstained from voting and phased out Terra’s existing infrastructure.
Figment posted a similar message on Twitter, expressing dissatisfaction with the Terra voting process and saying it would then distance itself from restarting the protocol:
We have no plans to support Terra 2.0 at launch and will decide to support Terra 2.0 at a later date if we consider it a new opportunity. We regret having to make this decision.
The proposal was changed several times unilaterally while the voting period was active, resulting in a lack of confidence in the integrity of the voting itself,” Figment said in an attached message.
As a result, the popular steaming company voted “no,” vetoing the main proposal to restart the Terra blockchain.
The initiative to restart the Terra blockchain came to light after the network disruption caused by the UST falling below parity with the dollar. In addition, the decline caused by UST led to the collapse of Terra’s native cryptocurrency LUNA. As a result, the network lost billions of dollars.
Terra CEO Do Kwon decided to remedy this dire situation by proposing to create a new blockchain. Terra’s restructuring initiative won approval with 65.5% of the vote, after which the blockchain recovery took official form.