As per recent development, MakerDAO’s Spark Protocol has imposed a restriction on users using VPN services. The implementation of the decision quickly sparked controversy, with the masses calling it a full-blown war on privacy.
Anyone who attempts to access the protocol’s website with an active VPN would be greeted with an error message. Some believe that the measures are linked to Maker’s attempt of restricting users within the US from accessing the crypto lending platform, as discussed in the terms and conditions of the Spark Protocol. Similarly, it also warns against the use of VPNs as it would lead to a block.
Based on a series of tweets by the DeFi analyst, Chris Blec, it was clear that he was among those who were ”disgusted” by the decision. The masses pointed out that the ban effectively acts as a blanket ban on VPNs across the entire globe, and not just the US. Blec continued to argue that blocking US residents and blocking users from other parts of the world are two different things, and called out how the ban is a war on privacy.
— Chris Blec (@ChrisBlec) August 6, 2023
The DeFi analyst also took a dig at some of the developers behind the Spark Protocol and accused them of prioritizing their profit over general principles. He accused them of putting their bank balances ahead of the privacy and rights of the users. Despite the ongoing controversy, MakerDAO has not made any comments or announcements as of now.
What Lies Ahead for the Spark Protocol?
The Spark Protocol was unveiled to the audience in May this year and claims to offer users annual returns of up to 8% by lending DAO. The lending platform was created via a soft fork of the Aave v3 by Phoenix Labs, a blockchain research and development firm created by the Maker Foundation.
Currently, many within the crypto space believe that the Spark protocol utilizes TRM’s blockchain intelligence services to block all wallets from the protocol that engage in unethical conduct. Some predict that the ongoing issues would eventually force the firm to take the decision back entirely or implement it in a new fashion. Currently, all that could be done is to wait and see.
