Response to a misleading information
We would like to share our response to the misleading FUD that has confused our community and misrepresented the information, so we'd like to elaborate more on here.
1. With regards to the point that 96% of the token supply remains in a wallet:
This is genesis minting, generating all the supply on *both* Ethereum and Binance Smart Chain. Currently, a fully decentralized cross-chain bridge does not exist at the moment so we need to unfortunately rely on a more centralized approach.
The biggest holder on Ethereum (964,300,000 ALPHA) is the locked token and can only be unlocked when ALPHA token on Binance Smart Chain (BSC) is transferred to the same address. This is how cross-chain functionality can be deployed on BSC, and how ALPHA can be on both Ethereum and BSC. This means that the 964M on the Ethereum side is only a placeholder for when users "lock" (or send the BSC ALPHA to the Ethereum address) and “unlock” the Ethereum side.
2. With regards to the point on minting function:
Readers need to understand first that the screenshot they originally shared is not from our contract. This function is for the purpose of potential protocol governance and upgrade future, and none of which will be taken solely by the team members when it comes to adjusting supply. We do not expect to use this function but we remain cautious, similar to AAVE’s recent upgrade with LEND token, that there is a small possibility future governance vote may change this so we include them for greater flexibility.
3. With regards to the point on admin control on Alpha Homora contract:
Similar to point no. 2, This is not something new. Aave, Compound, Synthetix, and many other successful projects that we look up to also follow this approach. These projects, including our project, have started off more centralized to optimize for more security, speed and flexibility while still ensuring that they can react promptly should things go wrong. With any new smart contract, there is a possibility of unexpected behavior and admin control allows the project to do damage control should a crisis happen. Once Alpha grows to become more established and battle-tested over time, we will continue to gradually decentralize our project similar to other projects. Decentralization is always a spectrum and our design decision at the current stage emphasizes speed, flexibility and security of our user’s funds.
All in all, our team is *not anonymous*. There is real reputation and legal risk at play, especially when we are invested by reputable firms, such as The Spartan Group, Multicoin Capital, and DeFiance Capital. Anonymous founders, on the other hand, don’t bear these risks, and thus need to be placed in higher scrutiny. With a doxxed project, we have legal consequences, and legal paperwork entered with many established entities including our investors and Binance to safeguard against any malicious behavior. With that being said, we do look to continue to decentralize our project over time - and we hope that this article clears FUD associated with each of the points the tweet mentioned. We will now focus our energy in developing Alpha products and make sure we can deliver innovative solutions to the blockchain industry.
Thank you to our community for your understanding and continuous support. Alpha is in its early day and we have a long journey ahead of us.