Steem blockchain has hard forked controversially seizing the tokens of key community members
One of the most controversial projects of the past time is not only Libra but also Steem. Recently, this controversial project has just hard forked and continues to cause controversy when capturing tokens of some critical members of the community.
Steem resumed hard fork again and became controversial with the 0.23 update “New Steem”
At 14:00 UTC, Steem deployed a hard fork of 0.23 “New Steem,” shunting some of the former Steem witnesses and stakeholders who created a splinter group called HIVE out of the ecosystem, it seems for good.
Notice from Steemit stated:
“New Steem will seize some user accounts that expertise in criminal activities by actively contributing to the threat against the Steem blockchain and/or to the theft of STEEM holders’ assets.”
Up to 64 users will have their tokens confiscated, totaling up to 23.6 million STEEM, worth about $ 6.3 million. Dan Hensley, one of the affected community members, said he lost about $ 1 million in hard fork bonuses.
Since Justin Sun’s TRON Foundation acquired Steem’s most prominent dApp, Steemit, the community has been in constant debate. In particular, concerned Sun would use Steemit’s sizeable token allocation to run roughshod over the rest of the community, and the Steemit ecosystem quickly executed a soft fork that effectively nullified its voting power. A few weeks later, they implemented a splinter blockchain, HIVE, which duplicated overall tokens from Steem.
However, the allocations owned by Sun and some incumbent witnesses, around 83.2 million STEEM tokens in total, were immediately confiscated and stored in a separate wallet. The Steemit post says the exclusion of selected Steem players from HIVE was illegal and a clear violation of the property rights of STEEM holders.
Despite this, Sun vehemently denied the connection between himself and the hard fork.
(1/4)First of all, both Steemit Inc. and I are not involved in this hard fork. However, I do have sympathy for current Steem witnesses and can see where they are coming from. The Hive witnesses took their assets away from them by force, causing huge losses to them.
— Justin Sun (@justinsuntron) May 20, 2020
One of the Steem users, Triple A, claimed that the tokens of people against HIVE were confiscated. However, this reason does not come from having their properties confiscated, but because these select accounts had continued to attack the Steam blockchain ecosystem.
Echoing Triple A’s comments, the Steemit blog post states:
“The Steem blockchain has been under constant attack from malicious accounts, and this has heavily varied user experience, dapps useability, and the stability of the chain itself.”
Perhaps exchanges like Binance and Huobi, some of Steem’s biggest stakeholders, will not want to get involved in this dispute.
Binance CEO Changpeng Zhao said in an interview with Laura Shin at Ethereal Summit:
“We didn’t know it was, like, a contentious fork. Every Steem witness that is human has quit. Justin denies involvement with the heist yet replaces the witnesses that quit with a sock puppet minutes later to do his bidding. Exchanges are the last line of defense.”
Shortly after the hard fork, it was claimed that the tokens were transferred to Bittrex trading in an attempt to return them to their original owners.
#steem conducted a successful hard fork, but it led to hacking. However, the hacked assets will be recovered.
— Steem witness (@SteemWitness) May 20, 2020
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