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Kujira Proposing DAO to Tackle Liquidity and Security Issues
Aug. 02, 2024. 2 mins. read.
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Facing liquidity and security issues, Kujira plans to create an Operational DAO to stabilize its ecosystem after deploying funds led to exploits, attacks, and market destabilization.
Facing liquidity challenges and security exploits, Kujira plans to establish an Operational DAO to stabilize its ecosystem.
Kujira, a decentralized finance (DeFi) platform, has encountered significant obstacles after deploying operational funds to improve liquidity and activity. This move resulted in “exploits, socially engineered attacks, and fallouts within the ecosystem,” leading to rapid sell-offs and market destabilization.
In an official X post, the Kujira team announced plans to propose a decentralized autonomous organization (DAO) called the Kujira Operational DAO to address these issues.
The team acknowledged the difficulties, stating they had “worked hard” to maintain stability, but the rate of selling made it impossible. They said, “Although this was by design by a select few, we of course take full responsibility for the position getting to this point, and we are truly sorry that it’s affected price.”
Despite speculations from certain influencers on X, the team denied that the situation was a “rug pull.” The public statement received mixed reactions from the community, with Blockchain Ecologist calling the decision “extremely irresponsible management.”
Countering claims that the entire treasury is at risk, the team clarified that 14 million native KUJI tokens remain “safe and sound in the treasury.” The proposed Kujira Operational DAO would take ownership of the Kujira Treasury and core protocols, with an initial mandate to safely reduce debt. “We will do this with Fuzion’s Bonds product, allowing us to offer the community discounted $KUJI, with a range of maturities and vesting schedules to minimize long-term price impact,” they explained.
Additionally, the team suggested migrating the Community Pool to the Operational DAO to allow “a longer and more considered voting period for grant requests, as opposed to the regular 48 hours.” Over time, the Foundation staking positions will also be transferred to the DAO, providing a sustainable source of revenue.
According to the Kujira X announcement, the team plans to deliver the roadmap for “BOW v2, USK v2, GHOST v2 and Perps” in the coming months, aiming to restore stability and trust in the platform.
SOURCE: Kujira proposes DAO to tackle liquidity, security issues
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