Steem’s Battle With Hive Leads to New Soft Fork, Freezing $3.2M Worth of Tokens
Steem blockchain has been in the headlines ever since its Tron accusation, which was followed by a string of controversies including allegations over Justin Sun trying to overtake the platform’s control. This power struggle led to a Hard fork to contain the control of Tron on the network and Steem split into Two blockchains, the new one being HIVE which was created on March 20.
Ever since the launch of the HIVE, the newly forked token had fared comparatively well against its predecessors. However, the power struggle began ever since Justin Sun acquired Steem Inc. on February 14 and with that acquisition, they also got their hands on almost 70 million Steem token via “ninja-mined stake”
The steem leadership who had no faith in Sun and how he was going to use those funds and went onto freeze the tokens Sun acquired in the Soft fork on February 23.
After freezing of Sun’s token, the soft-fork last Saturday also led to the freezing of Dan Notestein’s Steem tokens, who is the founder of BlockTrades exchange which is one of the top liquidity providers for the Steem tokens. Notestein was the second-largest holder of these Steem tokens. He said that he was not surprised by the move and expected the retaliation. He also noted that this was the exact reason why they don’t hold TRX tokens on BlockTrades and went on to call it valueless and not worth anyone’s investment.
The forking Saga Continues
Steem Inc released an unsigned notification on 4th April talking about the issues that have arisen ever since the March 20 chain split and also discussed the frozen accounts. The post notified that almost all Steem accounts were moved to the Hive blockchain after the hard fork except for the “ninja-mined” Steem token holders controlled by Justin Sun.
The post claimed that Sun led Steem network not only showed bias in the distribution of the forked chain but also excluded Steemit Inc stake from the chain. They also accused Sun of biased towards normal users who favored Steemit Inc witnesses.
A majority of the significant stakeholders or token holders on the Steemit blockchain are in favor of the newly created HIVE network, and as a result, their tokens have been locked up. Most of the stakeholders and Witnesses are also looking to jump the ship since HIVE token has been performing better in the market. So, through the new soft-fork these stakeholders are trying to bring most of the Steem users on the Hive blockchain.