Justin Sun and the STEEM Saga

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Last week Justin Sun, founder and CEO of TRON (TRX), took over the decentralised social media platform Steemit. The previous owner of Steemit owned a huge amount of Steem (STEEM) tokens, known as the “Steemit Inc. ninja-mined stake”. These tokens were handed over to Sun.

For fear that Sun would take over the entire blockchain, the witnesses had performed a soft fork that would avoid this. Yet this is exactly what Sun did next. Using cryptocurrency-exchanges Binance, Huobi and Poloniex (who also have large amounts of STEEM tokens) he took over the blockchain.

Sun claims that hackers had just tried to take over the platform with the soft fork. He says that his intention was only to secure the network, not to take over. Subsequently, he had executed a hard fork and replaced all witnesses.

STEEM community fights back

The community didn’t leave it at that, it reacted fiercely. Four former witnesses have returned to the “council of 20.” Changpeng Zhao apologized, withdrew his voice and says he wants to remain neutral. Huobi reports in a press release that TRON had stepped up to them because Steem would be under fire. In the meantime, several employees of Steemit have also stepped down, reportedly only 7 people are still working and several developers have taken their projects away from Steem.The above situation reveals a major problem with such DPoS systems in connection with exchanges that hold large shares of tokens. It goes against the concept of decentralization by making it possible for an organization to take over the entire blockchain. At the time of writing, the community is busy trying to take back control.

Industry reacts amazed

Several prominent figures from the industry have reacted in astonishment to the situation. Vitalik Buterin of Ethereum calls it a “bribery attack,” Dovey Wan of PrimiteCrypto calls it a “hostile takeover that shows that Sun is a hypocrite.” Dan from 3speakonline says the community is not for sale:

You are not weird, You are just a limited edition. Lets Post


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