![\"\"](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2020\/09\/makerdao-vote-to-not-compensate-black-thursday-victims-receives-harsh-criticism-768x432.jpg\")
<\/p>\n<\/p>\n
Large Makerdao holders decided not to compensate the victims that were liquidated during the unexpected flash crash that took place on March 12, otherwise known as \u2018Black Thursday.\u2019 An aggregate total of 38 votes was cast and more than 65% of the governance portal participants voted for zero compensation.<\/strong><\/p>\n The day after March 12, otherwise known as \u2018Black Thursday,\u2019 the Makerdao project made headlines<\/a> after between $4 to $6 million worth of the stablecoin DAI was left underwater due to an auction failure.<\/p>\n A vote<\/a> held this Tuesday indicates that the Makerdao project doesn\u2019t plan to compensate any of the victims from the black swan event on March 12. The vote had a few options that would pay victims a percentage of the losses, and one option that called for zero compensation.<\/p>\n Out of the 38 votes, over 65% voted for the zero compensation option, which means victims will get nothing for the losses. The news follows the recent class-action lawsuit<\/a> against the Makerdao project for $28 million that was filed in mid-April.<\/p>\n The plaintiffs claim that the Makerdao team did not explain the extreme risk of loss to investors. After the Tuesday vote, on Thursday morning, Makerdao cofounder Rune Christensen was asked about the poll decision.<\/p>\n \u201cI wish I could speak freely about it, but unfortunately I can\u2019t comment on it because of the on-going lawsuit,\u201d Christensen tweeted<\/a>.<\/p>\n A number of crypto enthusiasts didn\u2019t take too kindly to the vote\u2019s ultimate decision to not compensate the victims and conversed about it on social media. The popular Twitter account @chainlinkgod tweeted some harsh criticism<\/a> toward Makerdao and DAI to his 26,000 followers:<\/p>\n 56% of the collateral backing DAI is centralized nonbearer assets. So not only is DAI not decentralized, governed by MKR<\/a> whales, and unable to maintain its $1 peg, but they also refused to compensate users who got their liquidated for $0 on Black Thursday. Future of finance?<\/strong><\/em><\/p>\n<\/blockquote>\n One person said<\/a> that the vote was delayed purposely for months, so people forgot about the liquidations. A Makerdao team member called \u2018Monetsupply\u2019 described how the decision came to happen, and stressed<\/a> that the \u201cMaker protocol was designed to recapitalize system debt, but had no such guarantee for vault collateral.\u201d<\/p>\n In response to the Monetsupply\u2019s thread concerning the vault compensation poll, one person asked<\/a> if the class-action lawsuit was \u201cfactored in the decision.\u201d No one responded to the question asked.<\/p>\n Financial columnist William Foxley<\/a> discussed the class-action against Makerdao with the Harris Berne Christensen LLP attorney Adam S. Heder via email. Despite the recent zero compensation decision, Heder explained<\/a> to Foxley the lawsuit against Maker for $28 million would continue.<\/p>\n What do you think about the Makerdao\u2019s recent vault compensation poll decision? Let us know what you think in the comments section below.<\/strong><\/em><\/p>\n The post Makerdao Vote to Not Compensate Black Thursday Victims Receives Harsh Criticism<\/a> appeared first on Bitcoin News<\/a>.<\/p>\n\n