The Kujira team says the treasury is not at risk, and proposes the formation of a DAO to manage the treasury and core protocol.
Kurjia’s native token KUJI is plummeting after the foundation was liquidated on its leveraged liquidity positions.
Kujira’s KUJI token is down 42% on the day, and the chain’s total value locked (TVL) is down 22% to $38 million in the past 48 hours according to DeFiLlama.
The foundation attributes the liquidations to poor timing, as their leveraged deployments coincided with “exploits, socially engineered attacks and fallouts within the ecosystem” and the rate of selling made defending their positions “impossible,” according to a statement it published on social media.
Kujira is a decentralized finance (DeFi) and fintech-focused Layer 1 blockchain built on the Cosmos software-development kit (SDK). The chain is semi-permissioned, meaning new dApps must be approved by governance prior to their launch. Kujira launched in July 2022, and reached an all-time high TVL on March 8, 2024.
Moving forward, the foundation proposes to create the Kujira Operational DAO, which will take ownership of the remaining treasury and core protocols. They also proposed that the community pool be migrated to the DAO.
The migration process will use Fuzion’s OTC Bonds product, which would offer the community vested KUJI at a discounted rate.
