Crypto development platform Gitcoin has admitted to losing approximately $460,000 in Gitcoin (GTC) tokens after mistakenly sending funds to an unrecoverable contract address.
On October 6, the project leader “CoachJonathan” released detailed information event on the Gitcoin Governance Forum. He said the transfer of GTC from the Treasury was intended to be used for merchandise, memes and marketing budget proposals.
However, instead of going to the multisig address, it went to GTC tokens contract instead.
“This leaves funds trapped in the contract and cannot be recovered,” he lamented.
A total of 521,440 GTC tokens were lost in the chaos. The coin was trading at just under $0.90 at the time, so the USD loss was estimated at $461,000.
After the transfer, we contacted the Gitcoin core developers to discuss whether the contract has a withdrawal function or can be upgraded. It turned out to be neither of those options, so the funds were marked as lost.
In light of this incident, the team has shared plans to ensure this type of error never happens again and to establish clearer responsibilities should another incident occur.
“Large token holders and multi-signers have a responsibility to be extra diligent when dealing with funds that do not belong to them (myself included),” he concluded.
Gitcoin researcher Umar Khan commented on the forum that the DAO could treat token losses as a reduction in GTC supply rather than a loss of treasury funds.
“Sadly, if this happens, the crypto user experience is really broken,” observers said.
It seems @gitcoin Error sent ~521k $GTC (~$471,000) to the token address instead of funding the workflow address
It’s so sad to see this.Effectively burned half a million dollars
Why didn’t any voters/signers notice?If this happens, the cryptocurrency user experience will be truly ruined pic.twitter.com/DhI7lPaViY
— Lefteris Karapetsas | Recruiting @rotkiapp (@LefterisJP) October 7, 2023
related: Crypto.com accidentally transfers $10.5 million to customers instead of $100 refunds
Gitcoin is a platform that provides funding for Web3 builders looking for open source work. Project owners and developers can publish their projects, while donors can browse the project list and select the projects they want to fund.
The price of GTC has fallen by 1.1% in the past 24 hours and is trading at $0.889 at the time of writing. Additionally, the coin has fallen 99% since its all-time high of $89.62 in May 2021, according to CoinGecko.
Magazine: OPNX faces new danger, 3AC fugitives in chaos: Asia Express
Svlook
