In a huge reaction among STEEM’s investors and community of developers, and their decision to resign from it by removing some of their decentralized applications from the network in a clear sign of protest against the recent decisions.

Meanwhile, STEEM coin appears to be unaffected by the conflict as its price rose 1.4% yesterday.

As for the facts of the incident, it was after the partnership of TRON Network and STEEM, which we have already discussed in the topic:

The Largest Decentralized Social Media Platform Joins the Tron Network (TRX)

Voting began on changing the authentication process on the network that is elected by users, which was carried out by Tron and Steem.

Read:A sudden crash of the famous Binance platform puzzles the crypto community

The community turns against Tron CEO Justin Sun, and against some cryptocurrency exchanges that seem to have helped Tron in this move, which is a confirmation of the community’s concerns. Steem related to the fear of Tron taking over the platform.

Tweet embed used Tweet embedAnd the Tweet embed & binance Money for the runner taking over STEEM.

dApp / My Contribution:

Delete your dApps Day (remove them in protest – sample web code included) pic.twitter.com/KawRfcqvD4

– CADawg (I ❤️ Steem 22.4444) 🍀🕓 (_CADawg) March 2, 2020

Some members of Steemit have begun handing in their resignations, including some blockchain developers.

Others deactivate apps built on Steem.

Frédéric Aristad, one of the developers, said:

I’ve been building a game on Steem for two years

Now we have been told that we will be moving to the Tron network (without being notified before taking action)…

We spent thousands of hours building.

Read:Fusion Network project wallet hacked and more than 13 million FSN tokens stolen

The “Steem Wallet” team decided to remove them from the Apple Store, while “Steem Engine Tools” closed the site, demanding that they “delete their dApp.”

one face coin

Steemit announced less than two days ago that the blockchain network was operating itself, but in reality Steemit was not.

Shortly thereafter, the platform was backed up.

Justin Sun, with Tron’s recent acquisition of Steemit, shared that the Steem network and the Steemit community have joined forces and successfully defeated the hackers and all the money in SAFU.

According to him, these “hackers” froze 65 million STEEM and threatened to destroy it, describing this as an act against humanity and decentralization.

However some voices say there was no offside about a hostile takeover of Steemit and it was all planned by Justin Sun alone.

The other side of the coin

Comments on the Sun started pouring in quickly, saying that these “hackers” were actually community-elected witnesses (verifiers of the network).

These comments also made it clear that what had been done was a simple, reversible act of trying to limit Sun’s control by restricting access to the large amount of risk that potentially centralized.

Read:Ripple founder: The price of the cryptocurrency XRP is not linked to the on-demand liquidity service

The community wants Steemit Inc-ninja-mined stake to remain in the voting on governance issues.

However, the move was effectively scrapped by Tron, with the help of Binance, Huobi and Poloniex, the latter already owned by Justin Sun, which together allegedly contributed more than 42 million Steem votes.

Besides the fact that cryptocurrency exchanges got involved, there is also the disturbing notion that they are using user funds to do so.

Thanks to this, the previous validators were overthrown.

New authenticators have far fewer user accounts supporting them, currently between 19 and 31, than the thousands of old accounts they boast about.

Additionally, a network split and update process was carried out with the aim of undoing the changes made by the previous update, which this team described in an open letter as “maliciously organized,” potentially illegal and criminal.

The message also states that the urgent update process will reduce the time when STEEM cannot be withdrawn from 13 weeks to 1-3 days.

Also, the Steemit team and Tron Network will use the voting rights to resume the community arrangement for a period of 4-6 weeks, after which the judgment will be returned to the community when it returns with an arrangement and mutual agreement.

Cryptocurrency exchanges reaction

Trading platforms defended their actions.

Huobi said they had been notified that the Steem network was immediately vulnerable to an attack that would affect Huobi’s users’ funds, so when Steemit and Tron asked us, Huobi thought doing so would be in the users’ best interest.

But the procedure was not at all like this, they said.

Huobi makes it clearer by saying:

We have removed voting and will always stand behind the decisions of our users.

The CEO of Binance also responded to the incident and to community criticism by canceling the vote.

Done, without a vote. 1 supervision on my part. Bad contact/upgrade rubber seal. 2 binance They have no interest in managing the chain. We remain neutral. 3 will continue to support regular upgrades / hard forks.#onward

– CZ Binance 🔶🔶🔶 (cz_binance) March 3, 2020

Later, many of the crypto community interacted, including Vitalik Buterin, one of the founders of Ethereum, who said:

It appears that Steem (Delegated Proof of Stake (DPoS) has been dominated by large platforms to vote with depositors’ money.

This seems like the first major example of an actual bribery attack on crypto voting.

The centralization problem remains a major challenge for crypto projects that have long claimed that they are decentralized and governed by society.

Read also:

The founder of a promising decentralized finance project withdrew because “the crypto community is unhealthy”

Why will decentralization be the future of social media like Twitter, Facebook and Snapchat?