Hive (HIVE)
$0.137916 (-3.45 %) View coin |
Steem (STEEM)
$0.158592 (-1.21 %) View coin
19 May 2020

Upcoming Steem network fork aims to seize assets from over 60 accounts

Steem network witnesses (akin to validators) are planning to execute a controversial hard fork tomorrow (May 20) that will introduce two new changes. The more palatable one will reduce the time it takes to unlock staked STEEM tokens (referred to as powering down) from thirteen weeks to just four. The second change, according to an interview with Steem witness Triple A, will aim to seize the accounts and assets of those that “pose a direct threat” to the Steem blockchain. Decrypt estimates the assets at stake total ~$5 million.

Among the 65 targeted accounts (posted earlier today) are the Steem witnesses accused of opposing Tron’s acquisition of Steemit Inc. and organizing the Hive hard fork on Mar. 20. Triple A claims these accounts continue to harass the Steem ecosystem even after splitting off by spamming the network, damaging chain stability, and publicly attacking users, thus “justifying” tomorrow’s hard fork.

Why it matters: - The claims against the Hive network organizers are dubious at best as there isn’t any evidence to support these accusations. According to Decrypt, the seizures could instead be in retaliation for Hive supports excluding specific Steem witnesses from participating in the HIVE airdrop. Either way, this dilemma is another critical blow to the viability of delegated Proof-of-Stake (dPoS) systems, which have not been able to adequately prevent validators from forming cartels and exploiting the network. - Why would witnesses that left Steem for Hive even continue to hold any asset on Steem? The reason has to do with the aforementioned “power down” period. STEEM stakers must wait thirteen weeks to unlock their holdings fully. The in-fighting on Steem began in mid-to-late Feb., roughly twelve weeks ago, and any witnesses that didn’t immediately start powering down would still have assets locked up on the network. For those accounts with access to their funds, trading STEEM for HIVE recently became more difficult as exchange service BlockTrades shut down support for STEEM deposits due to the secrecy behind tomorrow’s hard fork.

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