Core Governance has moved 200 million CORE tokens[1][2] from the 525.6 million CORE “Users” allocation[3] wallet 0x860532[4] in the past 1 week, posting 80 million[5] of it as collateral to avoid liquidation or repayment on various loans that borrowed $10M USD value total[6]. More than 223 million CORE, over 20% of the stated circulating supply, appears to now be pledged as collateral for these loans, some taken from the “Reserves” token allocation address 0xeDD120[7] with additional collateral posted from Users allocation after the Reserves wallet ran low.
Has Core Governance changed CORE allocation tokenomics with no announcement? Will the remainder of the 200 million tokens all be put towards loan collateral, why was the user allocation used towards this purpose? Will Core governance be able to repay the $10M borrowed from users?
To our knowledge, the team has not publicly addressed these recent developments, leaving all Core users in the dark about what has been happening. The above is our best interpretation of events from on-chain analysis. Continuing to delay acknowledgement of the issue will only create further speculation. The right thing is for the Core team to acknowledge the clear facts of the situation, explain preceding events, and say what is being done to address it. Surely the team knows even the best technology in the world cannot replace a loss of users trust.