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Core DAO plans emergency hard fork after validators claimed excess rewards

Created at 2 Sep · 4:21 AM1 source↑ Market-relevant
IN SHORT

Core DAO is preparing an emergency hard fork to address an incident where validators claimed more CORE rewards than intended. The network stated the issue is contained, user assets are safe, and the upgrade will not reverse transactions.

Who's Involved

Core DAO
blockchain coordinating an emergency hard fork
Coinbase
exchange that paused CORE transfers
Bithumb
exchange that suspended CORE deposits and withdrawals
Coinone
exchange that suspended CORE deposits and withdrawals
Bitget
exchange that suspended CORE deposits and withdrawals
LBank
exchange that suspended CORE deposits

↳ Why This Matters

The incident and subsequent hard fork highlight potential vulnerabilities in blockchain reward mechanisms and underscore the importance of robust security protocols. Exchange suspensions indicate the severity of the issue and its impact on market liquidity and user confidence.

Key facts

  • Core DAO is initiating an emergency hard fork due to validators claiming excess rewards.
  • The incident is contained, and malicious validators can no longer draw extra rewards.
  • User assets are safe, and the hard fork will not reverse confirmed transactions.
  • Several exchanges suspended CORE deposits and withdrawals due to security concerns.

Core DAO is preparing for an emergency hard fork after a security incident allowed validators to claim more CORE rewards than the blockchain was designed to issue. The DAO confirmed the issue is contained, stating that "malicious validators" can no longer access excess rewards and that user assets remain secure.

The planned hard fork is described as a forward upgrade and will not involve a network rollback or the reversal of any confirmed transactions. This measure follows an earlier update where Core DAO acknowledged that a small number of validators had accrued rewards significantly above the protocol's intended issuance.

Around the time of the incident, several cryptocurrency exchanges took action. Coinbase temporarily paused sending and receiving transactions on the Core network. Bithumb and Coinone suspended deposits and withdrawals, citing suspected or confirmed security concerns. Bitget also halted CORE deposits and withdrawals, attributing it to wallet maintenance, while LBank suspended deposits due to project requirements.

Core DAO has not yet disclosed the total amount of excess CORE issued, the duration of the activity, or whether the additional tokens entered circulation. The specific vulnerability that enabled validators to obtain the extra rewards also remains unexplained. However, the DAO has committed to publishing a detailed technical postmortem.

Frequently asked questions

Validators claimed more CORE rewards than the blockchain intended to issue, leading to an excess reward issuance.

No, Core DAO stated the forward upgrade will not roll back the network or reverse any previously confirmed transactions.

Yes, Core DAO confirmed that user assets remain safe and the incident was limited to reward issuance.

Coinbase, Bithumb, Coinone, Bitget, and LBank restricted CORE deposits and/or withdrawals.

What Happens Next

01Core DAO will publish a technical postmortem.
02Core DAO will implement the emergency hard fork.

How It Developed

Core DAO reported that validators accrued rewards significantly above the protocol's intended issuance.
The DAO stated the incident was contained to reward issuance and user assets remained safe.
Several cryptocurrency exchanges, including Coinbase, Bithumb, Coinone, Bitget, and LBank, restricted CORE transfers due to security concerns or wallet maintenance.
Core DAO announced plans for an emergency hard fork, described as a forward upgrade that will not roll back the network or reverse confirmed transactions.
Core DAO stated it would publish a technical postmortem regarding the vulnerability.

Sources

T1
Core DAO plans emergency hard fork after validators drew excess rewardsCore says the incident is contained and its planned forward upgrade will not roll back the network or reverse previously confirmed transactions.Cointelegraph

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