Wonderland Co-founder To Pull The Plug Following Controversies

The Wonderland co-founder prepares to pull the plug following the many controversies and the divided community vote as we reported in our previous cryptocurrency news.

The DEFI debacle caused stirs across the ecosystem as the project head looks to wind some things up. The Wonderland co-founder is preparing to pull the plug after the divided community vote. Daniele Sestagalli posted that the Avalanche-based reserve currency experiment is coming to an end due to the divided community which means that they failed.
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The vote to save or wind down the project came right after Sestagalli asked the former partner and treasury head Michael Patryn to step down earlier this week. Patryn changed his name on multiple occasions even to be the co-founder of the now-defunct exchange QuadrigaCX. He has also been convicted of credit card fraud and pled guilty to a few other related offenses in the early 2000s.

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Wonderland experiment is coming to an end. It is clear from the vote that the community is divided. The core and heart of Wonderland is still the community. If we cannot find agreement on wether to continue or not, it means that we failed.

— Daniele never asks to DM (@danielesesta) January 30, 2022

There were a few other active votes on the Wonderland governance forum but the vote to wind down the project and to return the treasury back to the holders had 55% voting to save it and 45% in the favor of disbanding at the time of writing but Sestagalli said that the division resulted in one path forward:

“The duty of the Team is to enact the will of the token holders. As the vote is so close to 50/50 there is only one path forward, it is to reimburse/unwind.”

He added that he is also working with a team on a new proposal but it was pointed out by those in favor of keeping the project going that the community wasn’t split. They suggested that the token allocation was split and raised other concerns among the community. A number of alternative proposals were put forwards to save the project and these include another ongoing discussion on the potential merger with Abracadabra and Wonderland which is a DEFI lending protocol and a yield strategy generator. A new proposal for Wonderland 2.0 was published by the members of the community known as FROGS suggesting a transition of the protocol and treasury to a new DAO structure with a transparent governance system.

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Wonderland experiment is coming to an end. It is clear from the vote that the community is divided. The core and heart of Wonderland is still the community. If we cannot find agreement on wether to continue or not, it means that we failed.

— Daniele never asks to DM (@danielesesta) January 30, 2022

The DEFI scandal had ripple effects in the ecosystem with other networks like Terra feeling the impacts. The close ties with Abracadabra MIM and Wonderland also impacted the Terra ecosystem since MIM is used for yield farming with the UST stablecoin. The stablecoin dipped below its peg on Wonderland concerns and this had had a knock-on effect on LUNA which is used for price stabilization mechanisms. LUNA’s price is down by 13% in the past day as investors started liquidating.