After Steem Voting Controversy and Hardfork, Binance Lists HIVE

The cryptocurrency world is no stranger to drama, and the events surrounding Steem and its subsequent hard fork leading to the creation of HIVE are a prime example. This saga, involving a controversial governance vote, a community uprising, and ultimately, a split in the blockchain, culminated in a major exchange, Binance, listing HIVE. This article delves into the timeline of events, exploring the reasons behind the Steem hard fork, the role Binance played, and the implications of listing HIVE on such a prominent platform. It wasn’t just a simple listing; it represented a significant shift in the power dynamics within the crypto community and raised important questions about blockchain governance and decentralization. The listing of HIVE on Binance, just a month after the controversial events, signals a potential turning point for the newly formed blockchain and its community, demonstrating a growing acceptance and interest in a project born from adversity. Get ready to dive deep into this fascinating story, exploring the key players, the contentious decisions, and the resulting landscape of the Steem and HIVE ecosystems.

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The Steem Controversy: A Governance Showdown

The story begins with Steem, a blockchain-based social media platform that rewards users with cryptocurrency for creating and curating content. Steem operated under a delegated proof-of-stake (DPoS) system, where token holders vote for witnesses (block producers) who validate transactions and maintain the network. However, things took a turn when Justin Sun, the founder of Tron, acquired Steemit Inc., the company that originally developed the Steem blockchain. This acquisition gave Sun a significant stake in Steem's voting power, raising concerns within the Steem community.

In response to customer demand, leading cryptocurrency exchange Binance launched trading support for the community-led Steem (STEEM) hard fork Hive (HIVE) on

The issue arose when Sun allegedly used his acquired stake and the influence of major exchanges, including Binance and Huobi, to vote in new witnesses who were aligned with his interests. This move was perceived by many in the Steem community as a hostile takeover, as it threatened the decentralized nature of the platform and the established governance structure.

In response to customer demand, leading cryptocurrency exchange Binance launched trading support for the community-led Steem hard fork Hive on April 27. HIVE can now be traded against Bitcoin (BTC), Tether (USDT), and Binance Coin (BNB), however, withdrawals and deposits will not go live until April 29.

The Community Responds: Hard Forking to HIVE

In response to what they saw as a centralized power grab, a significant portion of the Steem community decided to take action. They orchestrated a hard fork, creating a new blockchain called HIVE. A hard fork is a radical change to a blockchain's protocol that effectively creates two separate blockchains. In this case, the HIVE blockchain was created as a fork of the Steem blockchain, but with a key difference: it excluded the stake held by Justin Sun and his allies.

This act of defiance was a bold move, demonstrating the community's commitment to decentralization and their willingness to take control of their own destiny. The hard fork resulted in a new cryptocurrency, HIVE, which was distributed to Steem holders (excluding those deemed to be complicit in the alleged takeover attempt).

• Key Reason for the Hard Fork: To remove what the community perceived as centralized control by Justin Sun and his aligned entities.
• Goal of HIVE: To create a truly decentralized and community-governed blockchain for social media and other applications.
• Impact on Steem: The hard fork significantly impacted the Steem blockchain, dividing the community and leading to a decline in its overall activity.

Binance's Role: From Controversial Voter to HIVE Lister

Binance, one of the world's largest cryptocurrency exchanges, found itself in the midst of this controversy. The exchange participated in the governance vote on the Steem blockchain, allegedly using customer funds to support Justin Sun's preferred witnesses. This action drew heavy criticism from the Steem community, who accused Binance of compromising its neutrality and undermining the principles of decentralization.

Facing backlash and accusations of siding with a centralized entity against a decentralized community, Binance later reversed its stance and unvoted the witnesses. The exchange issued a statement asserting its neutrality and stating that it has no interest in on-chain governance beyond the Binance ecosystem.

However, the damage was done, and the incident highlighted the potential risks associated with exchanges participating in blockchain governance, especially when they hold significant amounts of customer funds.

Listing HIVE: A Symbolic Move?

Just a month after the controversial vote, Binance listed HIVE on its exchange. This move was seen by some as an attempt to appease the HIVE community and demonstrate a commitment to supporting decentralized projects. Others viewed it as a purely business decision, recognizing the potential of HIVE as a viable cryptocurrency with a strong and engaged community.

Regardless of the motivation, the listing of HIVE on Binance was a significant event, providing the new cryptocurrency with increased liquidity and exposure to a wider audience. It also signaled a potential shift in Binance's perspective on the Steem/HIVE situation, perhaps recognizing the strength and resilience of the HIVE community.

HIVE was initially listed against Bitcoin (BTC), Tether (USDT), and Binance Coin (BNB), providing users with various trading options. However, withdrawals and deposits were initially delayed, adding to the anticipation surrounding the listing.

The Impact of the HIVE Listing on Binance

The listing of HIVE on Binance had several significant impacts:

• Increased Liquidity: Listing on a major exchange like Binance significantly increased the liquidity of HIVE, making it easier for users to buy and sell the cryptocurrency.
• Greater Exposure: The listing exposed HIVE to a much larger audience of potential investors and users, raising awareness of the project and its goals.
• Validation of HIVE: The listing provided a degree of validation for HIVE as a legitimate cryptocurrency project, demonstrating that it had the potential to succeed despite its controversial origins.
• Price Appreciation: Following the listing, HIVE experienced a significant surge in price, reflecting the increased demand and attention the cryptocurrency received. Some reports noted pumps of 400% following the Binance listing.

However, the listing also raised some questions:

• Was it a Genuine Show of Support? Some members of the community questioned whether Binance's listing of HIVE was a genuine show of support for the project or simply a calculated business decision.
• What Were Binance's Long-Term Intentions? It remained unclear what Binance's long-term intentions were regarding HIVE and whether the exchange would continue to actively support the project.

HIVE's Success Factors: Community and Decentralization

Despite the challenges and controversies surrounding its creation, HIVE has demonstrated remarkable resilience and has achieved a degree of success. Several factors have contributed to this success:

• Strong Community: HIVE benefits from a strong and passionate community that is deeply committed to the project's goals. This community has played a crucial role in developing and promoting the HIVE ecosystem.
• Decentralized Governance: HIVE operates under a decentralized governance model, giving the community a greater say in the direction of the project. This has helped to foster a sense of ownership and empowerment among HIVE users.
• Focus on Innovation: The HIVE community is actively developing new applications and features for the blockchain, demonstrating a commitment to innovation and continuous improvement.

The Future of Steem and HIVE: A Tale of Two Blockchains

The Steem/HIVE saga highlights the importance of decentralization and community governance in the cryptocurrency space. While Steem continues to exist under the ownership of Justin Sun, HIVE represents a community-driven alternative that prioritizes decentralization and user empowerment.

The future of both blockchains remains uncertain, but the story serves as a cautionary tale about the potential risks of centralized control and the power of a community to take action and create its own destiny.

Lessons Learned from the Steem/HIVE Split

The Steem/HIVE split offers several valuable lessons for the cryptocurrency community:

1. Decentralization is Crucial: The events surrounding Steem demonstrate the importance of decentralization in preventing centralized control and ensuring fair governance.
2. Community Matters: A strong and engaged community is essential for the success of any blockchain project.
3. Governance Mechanisms Must be Robust: Blockchain governance mechanisms must be robust and resistant to manipulation by powerful entities.
4. Exchanges Play a Critical Role: Cryptocurrency exchanges have a significant influence on the cryptocurrency ecosystem and must act responsibly and ethically.

HIVE Today: What to Know

HIVE has grown to be a considerable ecosystem with a variety of applications built on top of the blockchain. This includes social media platforms, gaming, and various DeFi (Decentralized Finance) applications. Here's what you should know about HIVE today:

Frequently Asked Questions About the Steem Hard Fork and HIVE

Here are some frequently asked questions about the Steem hard fork and HIVE:

What exactly is a hard fork?

A hard fork is a fundamental change to the protocol of a blockchain that creates two separate versions of the blockchain. It's akin to upgrading software, but in this case, the old software is incompatible with the new software, resulting in two distinct chains.

Why did the Steem community hard fork to HIVE?

The Steem community hard forked to HIVE due to concerns over centralized control following the acquisition of Steemit Inc. by Justin Sun. The community felt that Sun was attempting to manipulate the blockchain's governance and take control of the network.

What happened to users who held Steem before the hard fork?

Users who held Steem before the hard fork generally received an equivalent amount of HIVE, with the exception of accounts that were deemed to be supportive of Justin Sun's efforts. These accounts were excluded from the HIVE airdrop.

Is HIVE truly decentralized?

HIVE is generally considered to be more decentralized than Steem under Justin Sun's control. The HIVE community is actively involved in the governance of the blockchain and is committed to maintaining its decentralized nature.

What are the main differences between Steem and HIVE today?

The main difference is ownership and control. Steem is controlled by Justin Sun, while HIVE is controlled by its community. This difference has led to different development paths and priorities for the two blockchains. Steem has seen less community-driven development, while HIVE is thriving with innovation.

Conclusion: A Testament to Decentralization

The story of the Steem hard fork and the subsequent listing of HIVE on Binance is a compelling illustration of the power of decentralization and the resilience of a committed community. It highlights the inherent risks of centralized control in the cryptocurrency space and underscores the importance of robust governance mechanisms. While the events were controversial and disruptive, they ultimately led to the creation of a new blockchain, HIVE, which embodies the principles of decentralization and community empowerment. The listing of HIVE on Binance, after the initial controversy, showed the exchange's (perhaps reluctant) acknowledgement of the strength and influence of a decentralized community. The key takeaway is that the fight for decentralization is ongoing, and the cryptocurrency community must remain vigilant in protecting the principles that underpin this transformative technology. Will HIVE surpass Steem in the long run? Only time will tell, but the project has certainly cemented itself as a case study in how a community can effectively resist centralized control and forge its own path. The story serves as a valuable lesson for all participants in the cryptocurrency ecosystem, emphasizing the importance of decentralization, community, and ethical governance. Consider researching the HIVE blockchain, exploring its applications, and actively participating in its vibrant community to contribute to the ongoing evolution of decentralized technologies.