The Tornado Cash neighborhood voted in opposition to a proposal to convert TORN to wrapped ETH (wETH) to assist diversify the treasury.
Over two-thirds of the Tornado neighborhood rejected the proposal to promote TORN-v-1 at a 20% low cost to receive ETH utilizing decentralized change aggregator 1inch. The sale of TORN-v-1, a token used as a part of TornadoCash’s governance system to generate staking yield, would have been crowd bought beneath a two-week restrict order and locked up for a 12 months earlier than unstaking. Locked-up TORN-v-1 tokens could be redeemable for 1 TORN token on the finish of the lock-up interval. The minimal TORN shopping for worth would have been mounted at 0.008 ETH.
The proposal was first introduced to the neighborhood on June 29, 2022, by “ayefda.” It was touted as a manner to receive essential companions which might diversify the DAO’s treasury by shopping for TORN at a reduction. Community member “ayefda” additionally identified that incoming wETH would assist shore up liquidity and assist the neighborhood appeal to extra contributors in the course of the present bear market.
The neighborhood selected to reject the proposal with ETH handle 0xFfCF0A92A6A8C04b85aB8685ae98b46C243b871c on July 4, 2022. According to the voting web page, 68% of 180k TORN holders voted in opposition to the proposal.
A Twitter person “@WUTornado” lauded the DAO for proving its decentralization, noting a 200% improve in votes in contrast to the final proposal.
Tornado Cash implicated in high-profile DeFi hacks
Tornado Cash is a device to break the hyperlink between the supply and vacation spot of an Ethereum transaction. It makes use of good contracts which settle for funds from one handle and permit their withdrawal to one other. After funds are deposited, customers’ belongings and transactions are blended, concealing the transaction’s route.
Tornado Cash has been implicated in anonymizing funds from cryptocurrency hacks. Blockchain analysts have famous a collection of transactions involving the current hack of Harmony’s Horizon bridge, a software program part permitting the switch of tokens between two completely different blockchains, as having a forensic footprint comparable to North Korean money-laundering strategies. The hackers despatched $100,000 in 100 ETH increments to Tornado Cash.
In March, North Korean hackers codenamed the Lazarus Group are believed to have stolen over $600 million from a bridge used within the play-to-earn recreation Axie Infinity earlier than funneling a lot of it via Tornado Cash.
Other DAOs taking steps to strengthen funds
Other DAOs have additionally taken steps to harden their treasuries in opposition to the present market downturn. Staking service Lido Finance will vote on a proposal to promote 10,000 ETH, whereas Fei Protocol has voted to promote AAVE, Compound, Convex, and others in change for the DAI stablecoin issued by MakerDAO.
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