Core DAO Initiates Emergency Hard Fork Following Validator Exploit

Core DAO is set to implement an emergency hard fork after a small group of validators exploited a flaw in the reward distribution system, allowing them to mint tokens beyond the protocol's intended limits. The organization described the validators' actions as malicious and confirmed that user assets and network security remain unaffected despite the incident.

The Core blockchain operates on a hybrid consensus mechanism known as Satoshi Plus, which combines elements of delegated proof-of-work and delegated proof-of-stake. This system was designed to allocate up to 90% of newly minted CORE tokens to selected validators. However, a vulnerability in the scoring formula was identified, leading to the exploit. Core DAO has since classified the behavior of the involved validators as explicitly malicious rather than accidental.

In response to the exploit, exchanges have taken precautionary measures. Coinbase paused CORE token transfers on August 31, 2026, while LBank suspended deposits entirely. The incident raises concerns about the token's supply dynamics, as CORE has a hard cap of 2.1 billion tokens, with 40% allocated for node mining rewards over an 81-year schedule. The exact number of excess tokens minted during the exploit is still unknown, leaving traders uncertain about the token's actual supply.

The upcoming hard fork is a forward-only upgrade, meaning it will not reverse any transactions or alter the network's existing state. Core DAO is coordinating the upgrade with its validators to patch the vulnerability and prevent future exploitation. The success of this upgrade will be crucial in maintaining the integrity of the network and restoring confidence among CORE holders.

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Source: KLEA News