Core DAO validator reward error prompts exchange restrictions on CORE transfers
Core DAO, a blockchain network, reported that some of its validators—a group that helps secure the network and process transactions—received more CORE tokens as rewards than intended. The project has not yet revealed how much extra was paid out.
The issue has led two crypto exchanges, Coinbase and LBank, to restrict transfers of CORE, the network’s native token. Coinbase paused both sending and receiving CORE, while LBank suspended only deposits.
Exchange actions differ
Coinbase opened its incident report at 04:41 UTC on August 31, before Core DAO’s public statement at 05:24 UTC. By 17:38 UTC, Coinbase still listed the incident as under investigation, with CORE sends and receives paused. Buying, selling, and trading CORE on Coinbase were not affected.
LBank suspended CORE deposits at 05:00 UTC, citing project requirements. The exchange did not mention any restrictions on withdrawals or trading.
Unanswered questions about token supply
Core DAO said the problem was limited to reward issuance and did not affect network security or user funds. However, it has not clarified whether the extra rewards came from tokens already scheduled for future distribution or if they represent new, unplanned issuance.
The CORE token has a fixed supply of 2.1 billion, with 839.9 million allocated for node mining over 81 years. The project has not yet explained how the excess rewards might affect this supply or whether any corrective steps, such as clawing back or burning the extra tokens, will be taken.
What Core DAO has confirmed
- Some validators received more CORE rewards than intended.
- The issue is limited to reward distribution and does not impact network security or user custody.
- The root cause has been identified, and mitigations are in progress.
- A postmortem report will be published after the issue is contained.
What remains unclear
- The exact amount of excess CORE rewards distributed.
- Which validators or reward rounds were affected.
- Whether the extra rewards were part of the planned supply or new issuance.
- How the anomaly will be resolved, including potential clawbacks or adjustments to future rewards.
