So, the vote on the DeFi platform Balanced’s goodwill proposal is over.
And that vote rejected all the proposed measures, with none of them receiving the 66.67% vote in favor required.
For the record, the two proposals that got the most voter support were:
- Return 1/4 of the liquidated sICX and distribute 100k BALN to non-liquidated borrowers (approved by 50.67%) of 672 voters)
- Don’t return any funds in the reserve fund to anyone (approved by 52.23% of 543 voters)
You’ll recall, the proposed goodwill measures came after a “black swan event” led to the liquidations of 174 accounts and ICX 5,862,934.76.
During the event, large liquidations, high-risk positions and a drop in ICX price exasperated Balanced’s reverse rebalancing mechanism.
With the Balanced community failing to approve any of the goodwill proposals, many in the community are naturally wondering, “What now?”
Well, the answer to that question seems to be, at least for now, “Nobody knows.”
Or as Scott Smiley of Balanced put it:
“The recent @BalancedDAO votes have come to an end over the weekend. Many have asked me, “what’s next”.
The truth is, your answer to “what’s next” is as good as mine. Anybody can submit a vote at any time, regardless of previous results.”
On the Balanced forum, he was even more specific:
“However, most importantly, there is no formal, set-in-stone process here. What was just done are “Text Proposals”. They don’t enact anything. Anybody in the community (myself included), could completely disregard what happened, write their own smart contract to distribute funds based on some rules (maybe the 1/4 vote, maybe something new, totally up to that person), then put up a Funding Proposal to direct funding to their own contract.”
He also noted that community developers are working on a distribution contract “just in case anybody wants to vote for a distribution.”
Anyway, ICONspartan has kicked off a discussion in the forum, calling for more ideas in hopes of crafting a proposal everyone can agree on.
He also raises an interesting question, namely, about what constitutes an “emergency” and the role of the Balanced emergency fund in addressing such “emergencies.”
He writes:
“If Balanced rebalancing mechanism spinning out of control isn’t an emergency I am very curious about what is? Also there were emergency measures taken to stop the spiral from going down further. Also I am curious what the emergency fund should be used for if not for blackswan events like this.”
Obviously, this runs counter to another seemingly popular viewpoint, namely, that borrowers knew the risks — or should have known the risks, anyway — and deserve no compensation.
