Crypto Developer Platform Gitcoin Loses $460,000 in Tokens
Crypto developer platform Gitcoin has admitted to losing approximately $460,000 worth of Gitcoin (GTC) tokens after mistakenly sending the funds to an unrecoverable contract address. The incident was detailed by project lead “CoachJonathan” on the Gitcoin governance forum. The transfer of GTC from the treasury was intended for a budget proposal, but it ended up going to a GTC token contract instead of a multisignature address. As a result, the funds are now stuck in the contract with no way of retrieving them. A total of 521,440 GTC tokens were lost in the mistake.
Efforts to Recover the Lost Funds
After discovering the error, Gitcoin core developers were contacted to explore options for recovering the funds. However, it was confirmed that there was no withdraw function or upgradeability available in the contract. Therefore, the funds have been deemed as lost. In response to this incident, Gitcoin has expressed its plans to prevent similar errors in the future and establish clearer accountability measures.
Implications and Reactions
The loss of tokens has led to discussions about whether it should be considered a reduction in GTC supply rather than a loss of treasury funds. Observers have highlighted that this incident reveals flaws in crypto user experience (UX), emphasizing the need for improved systems to prevent such mistakes.
Gitcoin: A Platform for Funding Web3 Builders
Gitcoin is a platform that facilitates funding for Web3 builders seeking open-source work. It enables project owners and developers to showcase their projects while donors can browse through a list of projects and choose which ones they want to support.
The Current State of GTC
The price of GTC has experienced a 1.1% decrease in the past 24 hours and was trading at $0.889 at the time of writing. Additionally, the token has seen a significant decline of 99% since reaching its all-time high of $89.62 in May 2021, according to CoinGecko.
Hot Take: Lessons Learned from Gitcoin’s Token Loss
The recent incident involving Gitcoin’s loss of tokens highlights the importance of careful handling and diligence when dealing with funds that do not belong to you. It serves as a reminder for large token holders and multisignature signers to exercise extra caution. Furthermore, this event exposes the need for improved crypto user experience to prevent such errors in the future.
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