The commotion surrounding the lack of token burns looks to have been clarified, but the allocation of resources has yet to be determined.
Answers For The Questions?
The recent anonymous report raised some critical concerns on the Rabbit Finance protocol. In decentralized finance (DeFi), transparency is crucial, and the Rabbit Finance team has come back with an explanation for many of the anonymous accusations.
The whitehat raised significant concerns regarding token burns of the Rabbit tokens. Rabbit Finance clarified to their users that tokens had been set aside for burns––but how much so remains to be seen. The Rabbit team has burned a total of 380,097.82 RABBIT.
The team also confirmed the RABBIT tokens would be used for third-party expenditures and liquidity for the CARROT token.
“Recently, some loyal fans of leveraged farming platforms don’t like Rabbit and wrote various articles full of malicious speculation,” says the Medium post. “Rabbit is happy to see that the community and the masses are full of wisdom, and community members have also seen that so far.”
The Rabbit team attempted to clarify the burn process, but the Rabbit tokens burned so far are not enough.
The community, albeit anonymous, was right to follow the trail and ask the right questions. Some of which are still unanswered, e.g., the exact allocation of the protocol’s proceeds.
Strong Accusations Fall Flat
The main accusation of embezzlement is untrue, and there is little evidence the funds have been stolen. The tokens are still traceable to the hot wallets. Their existence in hot wallets suggests they could be used for third-party expenditures or future burns.
Rabbit lists third-party expenditures as marketing, product development, and security audits, according to the blog post. Users are right to still question how much percentage of the supposed burned tokens will be used for various allocations.
“Rabbit has been very reliable to guard everyone’s assets, and it has brought more generous farming income to deposit users and leveraged users than other products,” the Medium post reads.
Rabbit Emphasizes Transparency
Rabbit Finance will also be launching a new DAO and Governance program. The blog post details the response from the community and the plan to boost the Rabbit ecology. The community looks to grow organically and with the help of all users.
Rumors suggest that the accusations from the anonymous developer came from a member of the Alpaca Finance community. And Rabbit Finance called out to their fellow DeFi protocols in appreciation of error corrections.
“We believe that as long as we are full of the vision of creating valuable DeFi products for users, we will definitely get users’ love and support,” Rabbit’s responded. “We once again advocate healthy industry competition and objective reporting by the media.”
Rabbit has done well to respond to its community. Most protocols are not as responsive. The world of DeFi improves when it is self-critical. As much as competition makes for greater innovation, collaboration can lead to great products as well.
Where to find Rabbit Finance:
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