Michael Egorov, the founder of decentralized finance (DeFi) protocol Curve Finance, has ignited a heated debate within the community with a governance proposal seeking significant funding for his company, Swiss Stake AG.
The proposal, which seeks 21 million CRV tokens valued at around $6.3 million, aims to support Curve’s ongoing development, particularly focusing on scaling its stablecoin, crvUSD, enhancing foreign exchange markets, and developing leverage products.
While Egorov emphasized the need for continuous development and security audits, the proposal has faced significant criticism from community members. Critics argue that the proposal lacks transparency, with vague details on how the funds will be allocated and a lack of specific performance metrics.
Concerns over accountability have also been raised, with some members demanding more clarity and transparency before supporting the proposal. Egorov, while acknowledging the criticisms, has faced challenges in providing more specific details due to legal advice.
The proposal’s impact on the community fund has also been a point of contention. Some members believe that the significant draw on the fund, approximately 50%, could jeopardize the ecosystem’s long-term sustainability.
Also Read: EIP-7702 Refined, r1 Curve in Question: Ethereum Devs Debate Scope Creep in Pectra Upgrade
Despite the criticisms, there is also a general appreciation for the work that Egorov’s team has done. However, past incidents, such as the mass liquidation of Egorov’s personal CRV in June, have raised concerns about his ability to manage large-scale operations.
As the proposal moves towards a week-long on-chain vote, it remains to be seen whether Egorov can address the community’s concerns and secure the necessary funding for Curve’s continued development. The outcome of this vote will likely have significant implications for the future of Curve Finance and the broader DeFi ecosystem.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
