Illuvium DAO blocks NFT package opening event involving 3AC founder Su Zhu

by · February 28, 2023

Illuvium DAO blocks NFT package opening event involving 3AC founder Su Zhu

The community supporting Illuvium, an interoperable blockchain game, has demonstrated the power of decentralized autonomous organizations (DAOs) after blocking a planned nonfungible token (NFT) package opening event between Illuvium CEO Kieran Warwick and Three Arrows Capital (3AC) founder Su Zhu.

Warwick was scheduled to go up against Zhu in an “Influencer Illuvitars D1sk Battle”, where prominent crypto personalities go head-to-head to open NFT packs. However, due to the controversies surrounding Zhu and 3AC, the Illuvium community expressed concerns over the potential risks of being associated with Zhu, who is currently facing various accusations of unethical behavior.

The Illuvium Commander then proposed that the matter be voted on by the Decentralized Council. Following this, the council voted unanimously to cancel the event to avoid any association with Zhu.

According to Illuvium council member Deraji, the Illuvium project is working to be a leader in decentralized governance and Web3 gaming. To achieve this, the project must “avoid potential association with unethical individuals and events that could hinder mainstream adoption.” Deraji further explained:

“In this case, the community made its collective voices heard that this incident risked the reputation that The DAO has worked so hard to build. We leveraged our governance model to avoid our most famous figure sharing the stage with Zhu.”

After hearing the community’s voice, Illuvium’s CEO accepted the result and expressed his trust and faith in the community’s decision. “Although I weighed the pros against the cons, I will always respect the council’s judgment,” he said.

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Commenting further on the topic, Warwick told Cointelegraph that the DAO could veto any decision the project makes. “We tried to avoid situations like this by discussing it in advance, but some things are time sensitive, so this was quite a unique thing,” he added.

Related: 3AC liquidators to sell the firm’s NFTs to realize value in the midst of bankruptcy

The DAO’s decision not to risk association with 3AC may have saved them from potential consequences. On February 10, a crypto exchange project linked to 3AC sparked a backlash from members of the crypto community. Many people were outraged by the launch, with some vowing never to use the exchange.

Meanwhile, community members have also constantly voiced their disapproval of Zhu for his role in the 3AC bankruptcy. On January 3, the 3AC founder began firing off accusations against Digital Currency Group, alleging that it conspired with FTX to target Terra. However, community members shouted at Zhu and told him to focus on his own misdeeds.