The Hector Network community is demanding a faster liquidation of the project after learning of major losses from the Multi-chain bridge’s collapse. Token holders had already voted to liquidate, expecting the death to be swift and the treasury to be divided up among themselves. However, the liquidation process could take a minimum of six to twelve months and involve a liquidator, lawyers, and an auditor. This timeline has caused much frustration among the community, who feel they were misled when voting on the project’s future.
It would be helpful for everyone to understand the complexity, legal requirements, and thus time required to complete the liquidation process on an entity in existence for over a year and a half with multiple services, said Hector’s treasury manager, Farooq.
The situation highlights the difficulty of operating a decentralized autonomous organization (DAO). Hector’s developers filled their treasury with $100 million from crypto investors, but the DAO never approved the creation of a corporation in the British Virgin Islands, where Hector’s remaining leaders plan to proceed with liquidation.
We had over 30 forks of OHM. Some were bound to blow out, said lilbagscientist, a prominent figure in the Hector community. Activist investors had already been pushing Hector to conduct a rage quit months before the announcement of liquidation.
When Hector’s leadership held a doomed vote to centralize the DAO, the activist investors countered with a proposal to hold a rage quit. Hector leadership responded by expelling from the Discord anyone they suspected of conspiring against them.
The liquidation of Hector Network is a Pyrrhic victory for the community, as the treasury has lost millions of dollars to the Multi-chain collapse and likely more to legal fees.