All NewsEducationTV
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
Story archiveAll categories
← All Stories

Solana Nears Transaction Finality Halt Amidst Routing Bug

Created at 12 Aug · 2:21 PM1 source↑ Market-relevant
IN SHORT

Solana's blockchain came within 4.51 percentage points of losing transaction finality due to a routing fault at hosting provider Teraswitch. Nearly 29% of staked SOL went offline, impacting 90 validators and causing 333 SOL in missed rewards.

✉Newsletter

PiQ Daily

Pick your topics. Get only what matters, on your cadence.

Key Numbers

86%solana's proximity to losing transaction finality
4.51 percentage pointsdistance from losing finality
33.34%finality halt threshold
28.83%staked SOL that went offline
90affected validators
333 SOLmissed rewards
AS20326autonomous system impacted
27.34%AS20326's share of staked SOL
25%Solana Foundation's delegation cap
10 minutestime to find the fault
04:16:15 UTCservice restoration time

Who's Involved

Teraswitch
hosting provider experiencing routing fault
Solana Foundation
sets delegation program caps
Marinade Finance
staking protocol that analyzed the outage
Helius
second-largest validator on Solana
Laine
validator that came back clean
Cogent Crypto
validator that came back clean
Lion3d
validator that came back clean
Solana Nears Transaction Finality Halt Amidst Routing Bug

↳ Why This Matters

The incident highlights the critical dependency of blockchain networks on centralized infrastructure providers and the potential systemic risks posed by single points of failure, even for decentralized systems like Solana.

Key facts

  • Solana's network nearly lost transaction finality, reaching 86% of the 33.34% threshold.
  • A routing error at Teraswitch caused 28.83% of staked SOL to go offline.
  • 90 validators were affected, leading to 333 SOL in missed rewards.
  • Autonomous system AS20326, holding 27.34% of staked SOL, was disproportionately impacted.
  • The Solana Foundation's delegation program caps autonomous systems at 25% of network stake.

Solana's blockchain narrowly avoided a complete halt in transaction finality on Wednesday morning, reaching 86% of the threshold required to stop processing transactions. A misconfigured default route at hosting provider Teraswitch caused approximately 28.83% of staked SOL to go offline, impacting 90 validators and leading to 333 SOL in missed rewards. The network stops finalizing blocks at 33.34% of staked SOL delinquency.

Teraswitch explained that a default route from its Miami site, with its metric and communities stripped, was propagated by a route reflector in Amsterdam, leading edge routers in Europe and the Asia-Pacific to prefer it over their local routes. This invalid routing information was then rejected by data center cores, leaving twelve sites in London, Amsterdam, Dublin, Frankfurt, Singapore, and Tokyo without valid forwarding information. North America remained unaffected.

The outage was heavily concentrated on autonomous system AS20326, which holds about 27.34% of all staked SOL, exceeding the Solana Foundation's delegation program cap of 25% per autonomous system. Marinade Finance, a staking protocol that analyzed the event, noted that 94% of the stake within AS20326 went offline simultaneously. Engineers identified and resolved the routing issue within ten minutes, with service restored by 04:16:15 UTC.

Marinade Finance also reported that 59 validators holding 80.2 million SOL waited for routing to reconverge rather than switching to alternatives. While some validators like Laine and Cogent Crypto, run by Sol Strategies, and Lion3d, recovered quickly, the broader exposure extended beyond Teraswitch, with an additional 14.1 million SOL going offline across other providers. Marinade stated it would review its own concentration limits and begin publishing validator failover capabilities.

Frequently asked questions

A routing fault at hosting provider Teraswitch caused a significant portion of staked SOL to go offline, bringing the network close to its finality halt threshold.

Solana reached 86% of the 33.34% staked SOL delinquency threshold required to stop finalizing transactions.

Nearly 29% of staked SOL went offline, affecting 90 validators and resulting in 333 SOL in missed rewards.

AS20326, which holds over 27% of staked SOL, was disproportionately impacted, exceeding the Solana Foundation's 25% cap.

What Happens Next

01Marinade Finance will review its concentration limits per network and data center.
02Marinade Finance will begin publishing validator hot swap and automatic failover capabilities.

Get the newsletter.

Pick the topics you actually care about. We'll email when there's news worth your time, on the cadence you choose. Cancel any time from your account.

Cadence
CME Headlines
  • Product Modification Summary: Amendments to the Strike Price Listing Schedule for all Hourly Event Contract Swaps on Ether — Effective August 10, 2026
    6 Aug · 7:45 PM
  • Amendments to the Strike Price Listing Schedule for all Hourly Event Contract Swaps on Ether
    5 Aug · 7:15 PM

How It Developed

A routing fault at hosting provider Teraswitch caused nearly 29% of staked SOL to go offline.
Solana's network reached 86% of the threshold for losing transaction finality.
Ninety validators were affected, resulting in 333 SOL in lost rewards.
The issue was concentrated on autonomous system AS20326, which holds over 27% of staked SOL, exceeding the Solana Foundation's 25% cap.
Engineers identified and resolved the fault within ten minutes, with service restored at 04:16:15 UTC.
Staking protocol Marinade Finance is reviewing its concentration limits per network and data center.

Sources

T1
A Routing Bug Took Solana 86% of the Way to Losing FinalityDecrypt

Related Stories

Solana nears network freeze after routing failure
12 Aug · 1:46 PM
XRP bridge drained for $200,000 after software flaw
12 Aug · 4:41 AM
Harmony's ONE token plunges 37% after attacker mints 4 billion tokens
12 Aug · 5:26 AM
Casa CEO: Coldcard Exploit Highlights Self-Custody Resilience
11 Aug · 7:16 PM
BTCPay Server Offers Bitcoin Bounty After Wallet Exploit
11 Aug · 9:21 PM