Crypto Fund ‘Supernodes’ angered by New Voting Rules on Huobi
Huobi’s HADAX cryptocurrency exchange platform seems to be facing a lot of backlash from the community. Apparently this is a consequence of a few changes to voting rules on new token listings. The cryptocurrency exchange recently announced to their Japanese investors that they’ll stop trading services in Japan.
Huobi had published an update on Friday, 29th which reads,
“HADAX Super Nodes and Voting Rules Updates and Subsequent Arrangements”
According to the update, HADAX will rely on two separate groups of funds to help in deciding on new listings. They introduced “Standing Nodes,” which will include 14 large, traditional venture capital firms. The HADAX platform will invite firms like ZhenFund, FBG, Unity Ventures, and Draper Dragon to be part of this “Standing Nodes”.
31 “Selected Nodes” will also be included in the new rules, these are chosen via an application review process. These Selected Nodes according to the announcement, will be smaller, crypto-specific venture firms like Node Capital, Dfund, and BlockVC.
HADAX was launched by Huobi earlier this year in February. Users were allowed to vote using its HT token to decide on new assets to be listed on the trading platform. Later, they introduced a mechanism enabling notable venture firms to serve as a supernodes. These supernodes would help HADAX to screen the new tokens before they were presented for public voting.
But according to the updated rules, henceforth “All projects for the public voting list must be supported by a Standing Node and projects that were not supported by any standing nodes will be removed from the list and votes will be refunded.”
Therefore strengthening the role of Standing Nodes in deciding which tokens can be listed on the HADAX platform. This move drew quite a lot of criticism from several token funds according to Coindesk. They felt they’d been demoted and accused HADAX of being “discriminative and authoritarian.”
Du Jun, founder of Node Capital and also a co-founder of the Huobi exchange is one of the angry supernodes. He took to his WeChat platform to announce that his firm will withdraw and no longer be involved in the supernode vote.
Several other crypto funds joined Node Capital in this protest against Huobi. They announcing that the decision wouldn’t be tolerated and they’d withdraw from the role of supernode. This includes Dfund, which was founded by Chinese over-the-counter trader Zhao Dong. Crypto wallet Bixin’s venture arm, Bixin Capital also announced their displeasure and withdrawal.
Li Lin, co-founder and CEO of Huobi Group responded to the crypto funds’ departures saying that it could have been communicated better. But adds that they aim to ensure the quality of tokens chosen to be traded on the platform with this move.
On his WeChat channel, Li wrote:
“I apologize for not having effectively communicated with supernodes before publishing our new decision. … We understand that some selected nodes feel disrespected or their branding is hurt, which led to their respective responses. We build collaborations based on a win-win purpose. Partnership or not is always a free market choice. Huobi always opens its gate for partners. But HADAX must be completely revamped and we will have another major upgrade in July. In regardless of what model it will take, we think being responsible for users is of utmost importance.”
Image via Twitter
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