Core DAO triggers emergency hard fork after validator reward exploit

The protocol first identified the issue on August 31, noting that certain validators were accruing block rewards significantly higher than the network's intended issuance. By September 1, Core DAO confirmed the situation was contained and prevented further unauthorized reward claims. The upcoming hard fork is classified as a forward upgrade, meaning it will adjust network rules without rolling back or invalidating existing transactions.

Major exchanges, including Coinbase, Bithumb, Coinone, Bitget, and LBank, responded to the incident by restricting deposits and withdrawals. While trading functionality generally remained operational, the transfer halts highlight the caution surrounding the network's current state. Core DAO has yet to disclose the exact volume of excess tokens generated, the identities of the malicious validators, or whether any of the additional CORE reached the open market.

Core DAO plans to release a comprehensive technical postmortem once the upgrade is complete. The network, which relies on a delegated proof-of-stake architecture linked to Bitcoin security, remains under scrutiny as stakeholders await details on how the reward mechanism was bypassed. No specific timeline for the hard fork activation or the resumption of normal exchange services has been provided.