Kujira Suggests Using DAO to Address Security and Liquidity Issues

Key Takeaways 

The Proposal for an Operational DAO 

Kujira’s team announced their intention to establish a decentralized autonomous organization (DAO). They plan to call it the Kujira Operational DAO. The purpose of this DAO is to manage the platform’s operations more effectively. The team believes this step is necessary due to recent events that destabilized the market. According to an official statement on their X account, the initiative aims to address these issues head-on. 

Challenges Faced 

The Kujira platform encountered several difficulties. There were reports of “exploits, socially engineered attacks, and fallout within the ecosystem.” These issues led to rapid sell-offs, which in turn caused market instability.  

The team admitted they had worked hard to protect users’ positions, but the pace of selling made it impossible. Despite their efforts, the situation became challenging to control. 

Community Reaction 

The community’s reaction to these events has been mixed. Some members expressed support, while others were critical. One community member, Blockchain Ecologist, called the decision “extremely irresponsible management.” Others speculated that the situation resembled a “rug,” suggesting foul play. The Kujira team strongly denied these accusations, stating that they have been transparent about their actions. 

Kujira Treasury Status 

Amid the chaos, concerns arose about the status of the Kujira Treasury. Some feared that the entire treasury was at risk. However, the team clarified that 14 million native KUJI tokens remain safe in the treasury. This reassurance aimed to calm the community and provide a clear picture of the platform’s financial health. 

Proposed Solutions 

To address the current issues, the Kujira team has proposed several solutions: 

1. Establishment of the Kujira Operational DAO: This DAO would take ownership of the Kujira Treasury and core protocols. Its initial mandate would focus on safely reducing debt and stabilizing the ecosystem. 
2. Community Pool Migration: The team also suggested migrating the Community Pool to the Operational DAO. This move would allow for a longer and more considered voting period for grant requests, extending it beyond the usual 48 hours. 
3. Roadmap for Future Developments: The Kujira team plans to deliver a roadmap for upcoming developments. This includes updates for “BOW v2, USK v2, GHOST v2, and Perps.” These updates are expected to roll out over the next few months. 

In conclusion, Kujira is taking steps to stabilize its ecosystem amid recent challenges. The proposed establishment of the Kujira Operational DAO is a significant move to address liquidity and security issues.  

By managing the treasury and core protocols, the DAO aims to bring stability and transparency to the platform. The Kujira team is committed to navigating these challenges and ensuring a secure and robust DeFi environment for its users.