Illuvium, one of the largest interoperable blockchain games, made headlines after its community demonstrated the power of decentralized autonomous organizations (DAOs) by blocking a scheduled non-fungible token (NFT) pack-opening event between Illuvium CEO Kieran Warwick and 3AC (Three Arrows Capital) co-founder Su Zhu.
Illuvium’s DAO flexes its muscle
The “Influencer Illuvitars D1sk Battle” event was supposed to feature prominent crypto personalities opening NFT packs. However, the Illuvium community expressed concerns over being associated with Zhu, who faces various accusations of unethical behavior.
Zhu and Kyle Davies founded 3AC, a crypto hedge fund that collapsed in June 2021 after it failed to meet margin calls. As a result, Three Arrows Capital could not repay the money it borrowed from cryptocurrency broker Voyager Digital, which led to Voyager’s collapse the following month.
In response to the community’s concerns, the Illuvium CEO suggested that the matter be voted on by its decentralized council. To avoid affiliation with Zhu, the council decided to call off the function.
Illuvium has its eyes set on mainstream adoption
According to Illuvium’s council member Deraji, the project aims to be a leader in decentralized governance and Web3 gaming. To do this, the project must “avoid potential linkage with immoral individuals and occurrences that may inhibit mainstream adoption.” Deraji continued that the community used its governance structure to keep its most well-known member from taking the platform with Zhu.
The Illuvium CEO acknowledged the decision made by the community after hearing their viewpoint and expressed his trust in it. He stated that despite weighing the advantages and disadvantages, he always honored the council’s decision.
According to Warwick, the DAO has the authority to veto every choice the project makes. He continued by saying that although they had tried
to prevent situations like this by talking about it in advance, some things are just time-sensitive; therefore, this was a reasonably unusual occurrence.The Illuvium community’s decision to cancel the event showcased the power of decentralized governance in the blockchain and NFT space. By avoiding association with individuals with a questionable reputation, the community can protect its values and avoid incidents that may impede mainstream adoption.
The DAO may have avoided potential consequences as a result of its decision to avoid risking affiliation with 3AC. On February 10, a crypto exchange project associated with 3AC triggered a backlash from the crypto community, with many people swearing never to use the exchange.
Community members have also consistently expressed their displeasure with Zhu for his role in the 3AC insolvency. On January 3, the 3AC founder started firing accusations at the Digital Currency Group, alleging that it conspired with FTX to target Terra. However, community members called out Zhu and asked him to focus on his misdeeds.
Source: nft.news
This news is published and verified by the NFT News media team.
