Goldfinch, a decentralized credit protocol that aimed to bring undercollateralized lending onchain, looks set to shutter its Goldfinch Prime product and halt development after token holders voted to place the project into "maintenance mode."
The proposal had surpassed quorum more than four times over with just hours remaining in the voting window as of Tuesday morning. About 1.1 million GFI, Golfinch's native governance token, had been cast in favor of the shutdown proposal, with no votes recorded against.
If approved, the GIP-87 proposal, published by the protocol's co-founders Mike Sall and Blake West, says Golfinch would "stop pursuing new protocol development and new growth initiatives" and focus on recovering loans and maintaining user access to the platform.
It also calls for the creation of a new trust overseen by Goldfinch's Chief Restructuring Office Ted Gavin to continue "pursuing recoveries related to legacy borrower pools."
Warbler Labs, the core development team behind Goldfinch, would also receive a fixed $150,000 payment to help wind down Prime, maintain the legacy app and provide operational support for the next two years.
