Juno: the incredible story of the cryptoasset that lost 36 million due to a stupid code error
To err is human, especially in this case where a copy-and-paste error resulted in the momentary loss of $36 million in JUNO tokens.
The Juno project, which defines itself as a network of interoperable smart contracts on the COSMOS blockchain, suffered a serious setback when confiscated funds ended up on an address that does not belong to anyone. The operation is reversible, but it highlights the weaknesses of the Proof Of Stake system and On Chain governance.
Funds confiscated by community vote
Juno is not a new blockchain, but a community based on the Cosmos blockchain. This decentralized finance instrument has several principles: first, decisions about the network are voted on by the members (On Chain governance). It is also prohibited to own more than 50,000 JUNO tokens, the current price of which is €9.14, a far cry from its record value of €41 two months ago.
A user who owned more than 3 million tokens was penalized by the community, who considers these tokens to have been acquired fraudulently. Problem, the transfer of this token was the scene of a ” fat finger “, a copy-paste error in the code which sent all the funds to an unknown address, impossible to exploit.
Since then, we have been tearing our hair out on Juno’s Discord as well as on Twitter, because it is difficult to understand how this error could have occurred. Is it the fault of the developer himself or that of the 125 validators who did not spot the blunder? Juno founder Andrea Di Michele says the error will be fixed within a week.
The weaknesses of Proof Of Stake
The Proof Of Work used by bitcoin and ethereum uses a lot of energy to validate a block. The Proof Of Stake, on the other hand, requires the vote of users to validate a block or a transaction. On the other hand, the immutability of the blockchain implies that it is difficult to go back, especially in the event of human error.
While the Proof Of Stake system is presented as a new panacea that develops safer transactions and less energy-consuming blockchains, incidents of this kind obviously give it very bad publicity. The plummeting price of the JUNO testifies to this, and a large number of network users have lost confidence in this young project.
Source : Cnet.com