The DeFi debacle has caused ripples across the ecosystem as the project head looks to wind things up.
The co-founder of the embattled Wonderland decentralized finance project is preparing to pull the plug following a deeply divided community vote.
On Jan. 30, Wonderland co-founder Daniele Sestagalli tweeted that the Avalanche-based reserve currency experiment is coming to an end. He added that the divided community “means that we failed.”
The vote to save or wind down the project came after Sestagalli asked former partner and Wonderland treasury head Michael Patryn (who goes by the pseudonym ‘0xSifu’) to step down late last week.
Patryn, who has changed his name on a number of occasions, was sensationally revealed on Jan. 27 to be the co-founder of the defunct Canadian crypto exchange QuadrigaCX. He has also been previously convicted of credit card fraud and pleaded guilty to several related offenses in the early 2000s.
There were several active votes on the Wonderland governance forum, however, the vote to wind down the project and return the treasury back to its holders had 55% voting to save it and 45% in favor of disbanding at the time of writing. Sestagalli said that the division has resulted in a single path forward:
“The duty of the Team is to enact the will of the token holders. As the vote is so close to 50/50 there is only one path forward, it is to reimburse/unwind.”
He added that he is working with the team on a new proposal. However, it was pointed out by those in favor of keeping the project going that the community was not split. They suggested that the token allocation was split, which raised other concerns among the community.
A number of alternative proposals have been put forward to save the project from going under. These include another ongoing discussion on a potential merger with Wonderland and Abracadabra, a DeFi lending protocol and yield strategy generator.
Additionally, on Jan. 31, a lengthy proposal for Wonderland 2.0 was published by members of the community known as “Frogs” suggesting a transition of the existing protocol and treasury to a new DAO structure with a more transparent governance system.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.