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Steemit community set to move to Hive blockchain as Sun’s acquisition flops

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Looks like Tron founder Justin Sun might be in a little bit of trouble with his latest accusation of Steemit, the blockchain alternative to Reddit. The Steemit community has not been in tune with Sun acquiring control of Steem, and hence some members of the community have now decided to fork to a new blockchain dubbed Hive.

Sun acquired Steemit earlier this February from Ned Scott, one of the founders of Steem. In a now-deleted tweet, Scott had said that he sold Steemit to Sun, while Tron referred to the move as a “strategic partnership.”

While acquiring the company, Sun took ownership of approximately 65 million STEEM tokens in concern that the tokens could be used to dominate decision-making regarding the future of the Steem blockchain and community. Not everyone was happy with the move, and the original Steemit community came together to implement a soft fork to prevent Tron from being the central authority.

Blocktrades, one of the leading validators of Steem recently said:

“When Justin [Sun] acquired it, Steemit absolutely had some strong value, in the form of intellectual property, branding, and experienced blockchain and frontend developers. But now, all the developers he acquired are gone (they’ve all quit),”

To address the situation, Tron allegedly devised a plan which is being described as a “hostile takeover” with the help of some major exchanges to mobilize customer deposits to stake large amounts of STEEM tokens to vote in support of removing the previous witnesses. All the top-20 witnesses were replaced with accounts powered by Steemit, Binance, Huobi, and Poloniex, surprisingly, all of which were created in February 2020.

Moving to Hive

When the exchanges were questioned about the move, most of them backed out. Exchanges like Binance and Huobi published apology letters for the community. But looks like it’s not enough for the community members as the Hive blockchain is ready to go live on Friday, March 20, at 10 am EST, according to an announcement on Steem’s frontend application platform, Steempeak.

The announcement states that the Hive blockchain will be forked by “implementing a hard fork of existing Steem code,” but it will be fully decentralized, working independently from the Steem network. The post reads:

“While the Hive chain is a fork of the Steem code, the intention is to take responsibility to build something even better. The initial Hive launch will be a direct copy of existing blockchain with a few small upgrades, which will allow us to get back to community discussion on the direction for future development, needed changes, and most wanted chain-level features.”

Following the fork, existing Steem accounts would readily be available on the new blockchain with the history. At that point, users will have two accounts that would work independently from each other.

There have been no comments from Sun so far, and last time he addressed the community as a group of “malicious hackers” and then went on to enlist Binance, Huobi, and Tron-owned Poloniex to vote the STEEM tokens deposited by their own users to initiate a hard fork that would reverse the community’s action.

(1/9) On Feb 22, some malicious hackers froze 65 million #STEEM legally owned by Steemit, the core STEEM developers. When we found out, the hackers already hijacked STEEM & threatened to nullify the existing STEEM. We had a difficult choice.

— Justin Sun (@justinsuntron) March 3, 2020

Anna Larsen
Anna Larsen has been a Crypto enthusiast since 2016. Fascinated by the technology and its usecases she decided to pursue a career in content creation related to this space. The journey has been exciting ever since.

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