Steemit – the decentralized blogging platform that recently partnered up with the Tron Foundation – has utilized the resources of top exchanges like Huobi, Binance, and Poloniex to reverse a recent network change, prompting a community outcry.
On Feb. 14, Steemit entered into a “strategic partnership” with Tron that saw Steemit’s chairman declare on social media that he had sold Steemit to [Justin Sun],” referring to Tron’s founder.
Concerns that Tron might possess too much power over the network resulted in a move by the Steem community on Feb. 24 to implement a soft fork. The soft fork deactivated the voting power of a large number of tokens owned by TRON and Steemit.
The soft fork, however, was unable to prevent what has been described as a “hostile takeover” that took place on Monday that effectively unwound the community effort – aided by the collective voting power of tokens held on Huobi, Binance, Poloniex, among other exchanges.
According to the list of accounts powered up on March. 2, the three exchanges collectively put in over 42 million STEEM Power (SP).
With an overwhelming amount of stake, the Steemit team was then able to unilaterally implement hard fork 22.5 to regain their stake and vote out all top 20 community witnesses – server operators responsible for block production – using account @dev365 as a proxy. In the current list of Steem witnesses, Steemit and TRON’s own witnesses took up the first 20 slots.
According to a blog post posted on Steemit’s website that addresses the new hard fork, the Steemit team, consisting of “the Tron folks and Steemit Inc together,” justified its action by calling soft fork 22.2 “criminal and illegal.”