Decred: 2,077.97 DCR minted due to exploited inflation bug; no rollback decided

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Decred reported a mainnet inflation vulnerability exploited between August 16 and 17, resulting in the minting of 2,077.97 DCR. The bug, present since 2016, enabled double-spending of inputs due to flaws in transaction tree handling. A vulnerability report from MarsBit noted that the issue was submitted through a bug bounty program but exploited before a fix could be deployed. Decred will not roll back the blockchain to avoid disrupting users. The additional DCR minted does not exceed the 21 million hard cap and remains below previously under-issued subsidies. The team is now deploying a double-spending monitoring service and enhancing emergency upgrade procedures. Inflation data indicates the impact remains minimal compared to historical issues.

According to Huoxing Finance, the L1 blockchain Decred reported that between August 16 and 17, a mainnet inflation vulnerability was exploited, resulting in the creation of approximately 2,077.97 DCR. This vulnerability had existed in the consensus code since the mainnet launch in February 2016, stemming from improper handling of edge cases during interactions between the regular transaction tree and the stake transaction tree, which allowed double-spending of inputs. The vulnerability was reported via the bounty program on August 12 but was exploited before a fix could be implemented. Decred has decided against a blockchain rollback to minimize impact on users. The newly minted approximately 2,000 DCR does not affect the 21 million coin supply cap and is significantly lower than historical subsidy shortfalls due to missed votes and other issues, which exceeded 215,000 DCR. The team has since developed an additional double-spend monitoring service and plans to improve the emergency upgrade signaling mechanism.

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