Kujira responds to liquidation: will set up operational DAO to manage treasury and core agreements

On 1 August, the Kujira team issued a post detailing its response to the recent liquidity crisis and market panic. The team stated that it had decided to use some of its working capital for ecosystem liquidity and activity promotion, a decision that was seen as reasonable at the time.

However, a series of subsequent events, including security breaches and social engineering attacks, led to market instability. Some 'influencers' on social media incorrectly referred to the situation as a 'run on the bank', which is not true, but certainly fuelled panic in the market.

The team emphasised that 14 million KUJIs remain safe and secure in the Foundation's treasury and that the claim that the entire treasury is at risk is inaccurate. In order to enhance transparency and accountability mechanisms, Kujira will establish an operational DAO to manage the treasury and core protocols.