Exploring the Struggle for Balance Amidst Big Validators and Community Development
In the ever-evolving landscape of decentralized finance (DeFi), LUNC, a promising blockchain, faces a crossroads as it navigates through challenges posed by indifferent big validators and the quest for sustainable growth. The recent saga sheds light on the dynamics of power, responsibility, and the urgent need for change.
The indifference exhibited by big validators towards the fluctuating price of LUNC comes as no surprise. These validators, driven by a relentless pursuit of rewards, prefer to maintain a low profile while strategically aligning with community proposals to safeguard their positions of authority. The pivotal issue at hand revolves around the 20% VP Cap being to high, a crucial aspect that holds the key to rescuing the future of LUNC. Another underlying issue is the vast supply of LUNC attributing to the VP centralisation as acquirement of LUNC for large businesses is rather easy, most providing staking to holders on other chains.
Comparison To LUNC’s Sister Chain LUNA
This is a very centralised situation being played out on the LUNC blockchain, these nodes gives nothing in return for what they take. Also allowing for the top 5 to have SAY & SWAY over governance. Each proposal requires these nodes to vote as around 50% of the LUNC active set does not vote. KUCOIN being one of those nodes.
If we compare this to the sister chain LUNA, the results are shocking to say the least. Most of these larger validators are building elsewhere attributing nothing.
The harsh reality remains: should the status quo persist, the rampant abuse by certain validators threatens to erode the value of LUNC, ultimately leaving behind a landscape dominated solely by high-VP validators. To avert such a fate, a series of drastic actions becomes imperative for the very survival of LUNC.
Erosion of Values
A disconcerting erosion of values is witnessed as validators exploit liquidity across multiple blockchains, abandoning LUNC once it has been bled dry. This flagrant disregard for the blockchain’s well-being underscores the urgency for corrective measures. LUNC’s inherent generosity has been exploited to the detriment of small holders, builders, and validators alike. The symbiotic balance within the ecosystem is strained as top validators take disproportionately more than they contribute, if at all.
Noteworthy is the perspective that the actions of these top nodes stem from strategic business tactics rather than outright malevolence. They exploit the vulnerabilities of a struggling chain, quietly sapping its vitality while waiting for others to address the looming crisis.
A Business Perspective on LUNC’s Dilemma
To illuminate the situation, consider the scenario involving Allnodes and Hexxagon (TerraRebels). LUNC benefits from FREE endpoint infrastructure provided by Allnodes, a resource that remains underutilized. In a stark contrast, a hefty $40,000 per quarter is allocated to Hexxagon, serving only a niche segment of the LUNC community. This resource allocation has sparked discontent within the community regarding current wallet infrastructure.
A prudent business decision would be to reallocate the $40,000 towards chain development, harnessing the free infrastructure while channeling funds into projects that promise sustained growth and community enrichment.
LUNC: Navigating the Wild West of DeFi
LUNC has assumed the role of a digital town in the wild west of DeFi, facing a pillage and plunder mentality. The urgency of securing resources before they vanish has led to a precarious situation, demanding a careful balancing act. The analogy of a fallen tree aptly illustrates the repercussions of one-sided taking, serving as a stark reminder that change is long overdue.
Courageous Stands and the Road Ahead
In the face of these challenges, a glimmer of hope emerges. Some validators, like the author, have taken a stand, courageously voicing concerns and taking the high road even at the risk of jeopardizing their VP standings. This act of defiance underscores the necessity for collective action.
As LUNC seeks to carve a path forward, it is crucial for both seasoned and new guard validators to embrace change, contribute meaningfully to the blockchain, and pave the way for LUNC’s resurgence. Only through shared efforts and a renewed commitment to the blockchain’s integrity can LUNC flourish amidst the complex landscape of modern DeFi.
Disclaimer: The views expressed in this article are solely those of the author and do not represent financial advice. Readers are encouraged to conduct thorough research and seek professional guidance before making any investment decisions.