DeFi

Acala Makes Proposal To Burn 1.28 Billion aUSD After Hacking Investigation

The stablecoin Acala (aUSD) of the Polkadot ecosystem was hacked over the weekend, and the damage amounted to $1.2 billion. The team has “paused” operations through an urgent administrative recommendation to investigate the hack.

Specifically, on August 15, the team proposed to burn 1.288 billion aUSD after the Acala Council published its on-chain report.

Initially, Acala reported the issue to users around 2 a.m UTC on August 14, saying it was trying to “minimize the damage.” At 12 p.m on the same day, the team revealed the attack’s cause, confirming that more than 99% “aUSD is still falsely minted on the Acala parachain.”

Regarding the potential impact on the Polkadot ecosystem as a whole, Victor Young, Founder and Chief Architect at Analog commented:

“I still believe that Polkadot’s infrastructure is secure by design… the same cannot be said about Acala Network, an application-specific chain customized to power liquidity, economic activity, and stable coin utility on the platform.

In my view, we’ll continue to see more of these attacks because many dApp developers don’t put in the legwork when defining their code’s security properties. Even if the smart contract is audited, the code may not be foolproof.”

Acala Network is committed to this community governance proposal that will determine the resolution of the problem. Currently, it has a Governance Council consisting of 5 addresses.

According to the Notion roadmap, “comprehensive democracy” is still in the “planning” stage. Roadmap Phase 3 is almost completed.

Notion roadmap

As a result, according to the current governance mechanism, the Acala Council appears to hold disproportionate network control. While this may not be ideal given the protocol’s decentralized structure, it may help Acala with resolution management and “to resolve the error mint of aUSD & restore aUSD peg.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Solana memecoins crash while DTX Exchange hits 100,000 TPS on layer-1 blockchain

Discover how DTX Exchange's historic achievement of 100,000 transactions per second on a layer-1 blockchain…

42 minutes ago

Strategic Bitcoin Reserve Expected to Cut 35% of US National Debt by 2049

VanEck suggests the U.S. could reduce its national debt by 35% by 2050 through a…

48 minutes ago

The New Lead of Presidential Crypto Council Appointed by Trump Is Bo Hines

President-elect Donald Trump named Bo Hines as the executive director of the presidential crypto council.

1 hour ago

Best New Meme Coins with 1000X Potential: BTFD Coin’s Hot BIG50 Discount As Baby Doge Coin, Dogs Takes Gaming to the Next Level

Explore the best new meme coins with 1000X potential. Learn how BTFD Coin leads with…

2 hours ago

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

4 hours ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

4 hours ago

This website uses cookies.