Figment and Choir One will not be supporting Terra’s launch at this time. Both parties complained that the proposal to create a new chain was changed while it was being voted upon. Two of the biggest staking companies won’t be supporting Terra blockchain due to concerns about the way that the decision-making process was handled.
The two companies are Figment with $6Billion in assets under its management in February, likely lower than now, and Chorus One which is currently managing $1Billion assets.
Chorus One stated that it would not support the Terra blockchain’s new Terra protocol because it “didn’t follow a legitimate governance procedure.” It first explained that staking had been frozen on the network during the vote, and voting power had changed. The second reason was the fact that the main proposal for relaunching the blockchain had been modified during the vote.
Chorus One, which abstained voting, shut down its infrastructure and stated that it would not support the Terra blockchain, according a post to Twitter.
Figment also stated that it will not support the new blockchain. It stated that Terra 2.0 will not be supported at launch. However, it would make a decision to support Terra 2.0 later if it is deemed a new opportunity.
Figment voted “no” with veto on the main proposal to relaunch Terra blockchain. It stated in a blog that the proposal had been unilaterally altered multiple times during the voting period, resulting in a lack confidence in the integrity and validity of the vote.
Figment stated that it didn’t see launching a new blockchain so quickly as a solution. It also stated that Terraform Labs could still have influence over the new blockchain, and that Terraform Labs may be subject to a variety of lawsuits.
It stated that these lawsuits could also present a risk to infrastructure providers (such Figment) in future.
The collapse of the existing chain has led to the launch of Terra’s new blockchain. Its stablecoin TerraUSD lost its peg with the US dollar, resulting in a death spiral of the native token Luna (LUNA).
After its collapse, Terra’s governance was quickly restored by Terraform Labs CEO Do Kwon who proposed a new blockchain for the vote. The Block reported that the proposal had been modified during voting, raising concerns about its integrity.
Despite these concerns and many community, validator concerns, the proposal passed. The new blockchain will go live on May 28th.
