Secret Network Dilutes Supply by 75% Overnight Amid Developer Departure

The Secret Network, a Cosmos-based layer 1 network, has executed a massive supply dilution by minting 1.079 billion SCRT tokens overnight to fund its survival.

This move was made in response to the main developer quitting and the network's backers voting for Proposal 365, which aimed to keep the network operating ahead of the Sept. 1 support cutoff announced by SCRT Labs.

The mint has reduced the total supply of SCRT tokens by 75%, with existing holders seeing their collective share drop to roughly a quarter of the total. The allocated funds will be used for foundation and core-development programs, ecosystem fund, advisors, research and development, validators, builders, relayers, and remediation.

The network's continued operation depends on validators maintaining enough staking power and community backers taking over the technical workload from SCRT Labs. September 1 will mark a critical test of whether these allocations can support durable maintenance, development, and validator participation.