Decred Discloses Inflation Vulnerability Generating 2,077.97 DCR, Chooses Not to Rollback

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On August 25, Decred disclosed a vulnerability revealing a mainnet inflation flaw exploited between August 16 and 17, generating 2,077.97 DCR. The issue, present since 2016, stemmed from improper handling of stake transaction trees, enabling double-spending. Reported via a bounty program on August 12, the flaw was exploited before a patch could be deployed. Decred opted against a blockchain rollback to avoid disrupting users. The inflation data shows the additional DCR remains well below the 21 million supply cap and offsets prior underpayments. The team is strengthening monitoring systems and emergency upgrade protocols.

ChainThink reports that, according to X platform, the L1 blockchain Decred disclosed that a mainnet inflation vulnerability was exploited between August 16 and 17, resulting in the creation of approximately 2,077.97 DCR.

The vulnerability has existed in the consensus code since the mainnet launch in February 2016, allowing double-spending of inputs due to improper handling of edge cases during interaction between the regular transaction tree and the stake transaction tree.

The vulnerability was submitted through the bounty program on August 12 but was exploited before it could be patched. Decred has decided not to roll back to minimize impact on users.

The approximately 2,000 additional DCR issued does not affect the 21-million coin supply cap and is far below the historical subsidy shortfall due to missed votes and other reasons (over 215,000 coins). The team has already developed an additional double-spend monitoring service and plans to improve the emergency upgrade signaling mechanism.

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