A pseudonymous DefiLlama developer claimed that there is a hostile takeover attempt in the DefiLlama protocol through a token launch.
Decentralized Financial (DeFi) analytics platform DefiLlama has found itself with internal disagreements on its future roadmaps. Some DefiLlama employees and investors want to launch a token dubbed LLAMA, whereas others are against the idea. As such, the Web3 protocol has technically put any idea of airdropping LLAMA tokens on hold.
No Plans for DefiLlama Token
Through a series of tweets, the company apologized for the recent events and promised to operate transparently to avoid similar incidents in the future.
“We would like to put what happened behind us. There is no LLAMA token currently planned, and any airdrop will be discussed with the community, as every important decision is,” the company noted.
As such, DefiLlama indicated that all arms of the Llama corp would continue to operate under one umbrella for the sake of future prosperity.
Notably, a pseudonymous DefiLlama developer @Oxngmi, claimed that there is a hostile takeover attempt in the DefiLlama protocol through a token launch. The DefiLlama developer Oxngmi indicated that they do not want to be associated with the token launch.
“The person who controls both defillama’s Twitter and domain has decided to launch a token despite everybody in the team not wanting it,” Oxngmi noted.
With a signature verification on etherscan, Oxngmi indicated that the team, against a token launch, has forked the DefiLlama official page. Notably, the DefiLlama DEX aggregator takes pride in over 63k unique users with a total volume to date of about $5 billion. Having launched earlier this year, the DefiLlama protocol had indicated an incoming token airdrop for the contributors and users.
What's next for the aggregator?
Permits, Gnosis integration and trade history are in the pipeline with more much to come… and perhaps some nice surprises along the way for DeFiLlama contributors and users! 🪂
— DefiLlama.com (@DefiLlama) March 18, 2023
DefiLlama and the Web3 Market Outlook
The success of most Web3 protocols is directly pegged to their respective tokens. As such, DeFi protocols without tokens may be pushed to launch one to increase their financial outlook. Nonetheless, lawmakers around the world intend to regulate the tokenization industry in a bid to protect investors from predatory tokenomics. For instance, the United States Securities and Exchange Commission (SEC) has indicated that all digital assets apart from Bitcoin are unregistered securities.
The move could make a LLAMA token, if it is ever launched, directly pegged to the company’s financial gains and losses. Moreover, the project would have to report to investors and regulators regularly on the state of the project and the tokenomics.
The discussion of project tokenization comes amid a global banking crisis as decentralized financial projects reign. Notably, traditional banks are finding it challenging to compete with fintech startups in the lending and banking sector.
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