Validator Reward Anomaly Triggers Exchange Transfer Blocks for Core DAO

A Core DAO validator reward anomaly has triggered exchange transfer blocks and left token issuance in question. The incident occurred on August 31, when Coinbase and LBank restricted CORE transactions.

According to Core DAO, a small group of validators exceeded the protocol's intended reward levels, creating an unresolved supply question for the CORE token. The project stated that user assets are safe, but exchange access remains restricted.

The anomaly is related to the validator compensation process, which combines newly minted CORE block rewards with transaction fees. Core DAO's documentation indicates that 90% of rewards go to validators and their delegators, while 10% goes to the System Reward Contract.