Cardano founder Charles Hoskinson calls for a revote over the distribution of NIGHT tokens linked to the DeFi lending protocol Liqwid. In a March 15 livestream from Wyoming, he said project insiders should step aside from the voting process to keep the decision fair.
Meanwhile, the dispute involves about 18.81 million NIGHT tokens, worth close to $1 million.
Dispute Over 18.81 Million NIGHT Tokens Allocation
The controversy centers on nearly 18.81 million NIGHT tokens, tied to Liqwid’s ADA market and currently valued at close to $1 million.
According to community discussions, the tokens were originally linked to commitments made during the Midnight ecosystem’s Glacier Drop, where assets placed in smart contracts were expected to be returned to their rightful owners.
Hoskinson noted that in October, the Liqwid team publicly indicated that 100% of the assets held in the protocol’s smart contracts would be returned.
Perhaps, the protocol later moved the decision to a DAO governance vote, which created controversy within the community. Some members believe the vote was unfair because people connected to the project could benefit directly from the result.
Hoskinson: Insiders Should Recuse From Vote
To resolve the dispute, Hoskinson proposed rerunning the governance vote while asking insiders who could benefit to step aside.
He also suggested simplifying the vote itself.
Token holders should decide one question: should the project honor earlier commitments made to users?
“If people deposited funds believing those terms would be respected, the responsible thing is to let the community decide whether those promises should stand.”
Hoskinson believes holding a second vote could fix the issue and rebuild trust. He warned that if users feel a small group controls decisions, confidence in the protocol may drop.
Following Charles Hoskinson’s comment, the Liqwid team acknowledged the concerns raised by the Cardano community. In a response, the team stated,
“We understand where you and others in the community are coming from. We will have the next steps to share shortly.”
The team may soon clarify how it plans to address the dispute involving 18.81 million NIGHT tokens.
As of now, the Night token price is trading around $0.0513, down almost 88.56% from its high.
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FAQs
What is the dispute over Liqwid’s NIGHT tokens about?
The debate centers on 18.81 million NIGHT tokens tied to Liqwid’s ADA market, with users questioning whether earlier promises about asset returns were honored.
How much are the disputed NIGHT tokens worth?
The 18.81 million NIGHT tokens involved in the dispute are currently valued at roughly $1 million based on the latest market price.
How has the Liqwid team responded to the NIGHT token dispute?
The Liqwid team acknowledged community concerns and said they will share next steps soon to address the controversy.
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