Core DAO Validator Reward Anomaly Triggers Exchange Transfer Blocks

Coinbase and LBank restricted transactions involving Core DAO's token after some validators received excess rewards. The incident occurred when validator rewards exceeded the protocol's intended levels for a small group of validators, according to Core DAO.

The project said it had identified the root cause and was working on mitigations, stating that user assets were safe. However, the size and lasting supply impact of the anomaly remain unknown due to the lack of disclosure regarding the amount of excess CORE rewards received by the affected validators.

Core DAO's validator rewards normally include newly minted tokens, which creates uncertainty about whether the anomaly accelerated rewards already scheduled for later distribution or added issuance outside the project's planned path. The restrictions imposed by Coinbase and LBank differ, with the former limiting sends and receives while the latter suspended deposits only.