CZ on "Every dip is an opportunity": Accurate prediction was pure coincidence, but he remains bullish
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THORChain Co-founder Defends Protocol's Decentralization Amid Criticism
Chad Barraford, co-founder and lead developer of THORChain, has made a controversial claim that his protocol is more decentralized than Bitcoin and Ethereum. This assertion comes in the wake of criticism regarding THORChain's response to a significant hack of the cryptocurrency exchange Bitget, which resulted in an estimated loss of $387.5 million in September 2026. Barraford argues that while a small number of operators could potentially halt THORChain, even fewer entities could stop the operations of Bitcoin or Ethereum.
The debate intensified after THORChain declined to intervene in the movement of funds linked to the Bitget hack, leading to accusations of inadequate governance. Barraford maintains that THORChain's governance model is based on collective decision-making, where validators vote on changes and most require a two-thirds majority to pass. He emphasizes that the protocol's neutrality prevents it from selectively blocking transactions, similar to the limitations faced by Bitcoin and Ethereum.
Critics, however, highlight vulnerabilities in THORChain's governance structure, particularly its use of a threshold signature scheme (TSS) for fund control. They argue that this collective custody model poses risks that Bitcoin and Ethereum do not face, as those networks do not pool user funds in the same manner. Furthermore, governance actions can be taken with as few as three or four validators, raising concerns about the protocol's ability to effectively manage emergencies without compromising its stated neutrality.
The discussion around THORChain's governance reflects broader issues in decentralized finance (DeFi), prompting investors to scrutinize the actual mechanisms of decentralization within protocols. Key considerations include the number of validators required for emergency actions, the authority over pooled funds, and the implications of removing certain governance tools, such as address blacklisting, which THORChain eliminated in February 2025 to maintain neutrality.
Source: KLEA News