Rebase Bug Leads to Governance’s Death

Endy Callahan

It’s reported by many mass media sources that unaudited contracts resulted in the system’s death after all. The development of contracts requires a lot of effort and plenty of care. Hastily-created projects should not be launched since they are prone to errors and damages.

Also, teams need to test and try their systems to make sure that there are no bugs that can bring damage and losses. As many software providers announce, a bug led to the death of the governance contracts – they have been completely broken.

Recent data proves that seven hundred and fifty thousand USD worth of tokens are currently locked from use. The founders and developers of the protocol say that all this resulted from a rebase function that suffered from a bug.

Some stable coins adopt the same principles and Yam is one such instance. It employs a mechanism that is similar to that applied by Ampleforth. There, the contracts can destroy as well as create the sufficient supply. This is based on the asset’s price to maintain a peg of one U.S. dollar. Many participants are aware that this may result in a significant influx of new tokens and then the market will have to resolve other issues caused by the overflow of assets.

Resolving Issue Takes Effort and Time

Programmers who have been researching this matter announce that there are at least three parts to the problem and it is compounded by an extra mechanism. The latter was used to balance the asset’s price. All users expected the system to show the price reflecting the updated supply.

Next, the proceeds that the sale sends then are moved to the project’s treasury contract. Governance is another major aspect of the entire system. This part requires a certain percentage of all assets to be fully committed to a new proposal for over twelve hours.

Developers state that they were aware of the lack of tokens that were delegated. More than that, promoting a support event to make holders participate in voting was really fruitless. Experts claim that the rebase generated a massive amount of new assets and sent them to the treasury contract. At the moment, it seems to hold the greatest portion of all tokens.

Reaching quorum is too challenging now since there is not enough appropriate amount of the asset. ‘Bricked’ treasure and governance are not accessible. As programmers say, the rebase bug is too hard to fix since they would then need to gain access to governance. Specialists predict that this is the death of the whole project. Even if the system is not yet dead, then tokens and existing smart contracts are no longer available.

Hopefully, highly skilled and experienced teams will be able to resolve the issue. This sort of event will serve them as a useful lesson – the problem that has recently happened will teach developers and project founders to be more careful and attentive while creating their programs and schemes.