Typos send $36M worth of cryptos to nirvana

Typos send M worth of cryptos to nirvana
Written by insideindyhomes

The wrong wallet address was not detected in the Proof of Stake process
How to fix a bug on the Juno blockchain?
Governance-based blockchain: voting among token holders

Juno is a crypto newcomer created in the COSMOS ecosystem. Juno claims to have emerged from a community-based developer initiative and aims to be the first permissionless network for the interoperable deployment of smart contracts. The smart contracts provided on the Juno blockchain run over a network of several blockchains and can therefore also be accessed from any platform within the IBC ecosystem. This distinguishes them from the Ethereum blockchain. With the proof-of-stake process, Juno wants to be more scalable and efficient, translated cheaper and more environmentally friendly.


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A typo with consequences

As CoinDesk reports, over 35 million euros worth of Juno tokens were to be removed from the wallet of a large Japanese investor (whale). This was preceded by an unprecedented vote within the Juno community to dispossess the whale. This was possible because the principle of a governance-based blockchain states that community decisions are codified directly on the blockchain.
Japanese major investor Takumi Asano is said to have squeezed out $120 million from the Juno airdrop earlier this year. According to the community vote, Asano operated an exchange service that rendered its wallet unusable for the so-called Juno stakedrop, thereby embezzling the equivalent of $36 million. Funds should now be transferred to a community controlled “Unity” address. However, due to a typo, the millions were moved to the wrong address, so that neither the whale nor the community had access to them.

Juno and the Whale: Blockchain Governance

Andrea Di Michele, one of Juno’s founding developers, told CNET that he sent the developer responsible for the transfer the correct wallet address and a hash number. The hash number and not the wallet address was probably accidentally copied, which sent the millions off. Worse than the error is that no validator noticed it, Di Michele said no one checked the wallet number. “This is a wake-up call for validators,” the Juno developer continued.
Since Juno is a governance-based blockchain, the transaction can be reversed just as it was initiated in the first place by a vote of the token holders. A course change requires a majority vote and a subsequent software update, Di Michele told CNET. He further confirmed that the funds would then be directed to the correct address within a week. “Funds will be restored with another upgrade that adjusts the chain status. PoS-chans are not like Bitcoin, they are governance-driven. If the governance says something, even status changes can happen.”
The consequences of this failed transaction are not yet foreseeable. Because everything on the blockchain is public, in comparison, mistakes at large financial institutions, such as Citigroup recently, when a flash crash terrified the European stock markets, are easier to correct. The “fat fingers” in the traditional banking sector may also not become public in real time.
Daniel Hwang, head of protocols at stakefish, one of Juno’s validators, told CoinDesk developers can make mistakes and need to rely on the validators because they’re the ones running the codes, after all. “The validators should have a duty of care to ourselves to actually validate the code we run.”

The failed transaction is another setback for Juno after a mysterious smart contract attack paralyzed the Juno blockchain shortly after the community vote. The Juno course has recently fallen deeply.

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