The Hacker’s Demands
A hacker who stole millions from decentralized exchange aggregator KyberSwap has demanded full “executive control” of the company. They want to take over the governance of KyberDAO and make changes to the protocol. Their demands include the resignation of the current management and the transfer of all documents and assets.
KyberSwap Hacker Outlines Demands
The hacker plans to buy out the outgoing executives at a fair valuation and double the salaries of employees. They also offer a 12-month severance package with full benefits for anyone who wants to leave. Additionally, liquidity providers will receive 50% of their stolen funds.
“Under my management, Kyber will undergo a complete makeover. It will no longer be the 7th most popular DEX, but rather an entirely new cryptographic project,” they wrote.
If Kyber does not meet the hacker’s demands by December 10th, they will not return any stolen funds. The note was signed “Kyber Director.”
Decentralization Conundrum
This incident highlights a problem with decentralization in general. Despite claims of decentralization, many protocols have power concentrated in the hands of a few influential entities. This makes it possible for someone like the KyberSwap hacker to blackmail and take control.
Cardano founder Charles Hoskinson recently pointed out that even Bitcoin’s network could be taken over by issuing subpoenas to three entities. Cardano itself is working towards completely decentralized governance through a voting process.
Hot Take: The Challenge of Decentralization
This incident with the KyberSwap hacker raises important questions about the true nature of decentralization in the crypto space. While decentralization is often touted as a key feature, the reality is that power can still be concentrated in the hands of a few influential entities. This leaves protocols vulnerable to attacks and manipulation, as demonstrated by the hacker’s demands for control over KyberSwap. The crypto community must continue to strive for true decentralization, where power is distributed among a diverse network of participants, in order to achieve greater security and resilience.
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