Huobi Exchange's New Voting Rules: The End of Democracy HADAX

Huobi's autonomous digital asset exchange, HADAX, updated its voting rules and received not only a barrage of criticism and a massive refusal of investors to vote on the new rules, but also an obscene comment.

HADAX, created in February, gave users the right to use Huobi tokens to vote for the crypto coins they want to see on the exchange. The democratic approach quickly gained popularity, allowing all users, along with nodes, to vote for a listing. But this democracy did not last long, and privileges were soon added to allow “supernodes,” venture capital firms, to consider new tokens before being put to a public vote.

The updated HADAX rules effectively gave the power to decide whether new tokens should be listed for a general vote to two groups of investors, eliminating the idea of ​​equal votes for all users.

The new rules ranked investors by dividing them into groups. The first group of “permanent nodes” includes 14 venture capital firms, large market participants, selected by “birthright”, image and capital.

The second group, “elect nodes”, is selected by open voting and includes 31 cryptocurrency companies.

Now the presence of tokens is listed HADAX will directly depend on the support of their permanent nodes. If a token is not supported by one of the groups, it loses the right to be put to a public vote. Thus, permanent nodes are given the right to admit or not admit tokens to public voting. 

Such discrimination caused a flurry of indignation in the crypto community and a negative reaction from investment companies of both groups.

“Fuck the HADAX team!” This is exactly how the Founder of Node Capital, Du Jun, reacted, accompanying his comment with a corresponding drawing. The rest of the cryptocurrency investors supported this reaction of Node Capital and refused to try on the role of “supernodes”.

In his response to such emotional statements, Huobi Group CEO Li Lin apologized, but only for not informing investors in advance about the new rules and noted that this was all done to ensure the quality of the tokens and HADAX will undoubtedly be completely updated, and the exchange is planning another major modernization this month.