BNB Chain reacts publicly after $100 million hack, declares further steps
Following tonight’s events, the BNB Chain team submitted a lengthy post called the Ecosystem Update, which aims to engage with the community to decide on the future course of the BNB ecosystem.
Starting with an apology, the post announces the initiation of an on-chain governance vote to decide a number of issues, including whether or not to freeze the stolen funds, whether to use BNB Auto-Burn to cover remaining stolen funds, launching a future bug detection program and setting a $1 million reward for special cases and a hacker finder reward of 10% of the recovered funds.
Voting will begin within a few days while the BNB chain is being updated. In addition, a new mechanism for on-chain governance decision-making will be introduced in the future to eliminate the risk of such attacks.
What else will Binance do to resolve hack?
The hacker did not dump his stake in BNB and made the logical decision to lend 900 thousand BNB to the lender, getting $147.5 million stablecoins in the process. Thus, Venus lending protocol received a bad debt of $118.7 million, which is secured by the stolen 900 thousand BNB.
Most likely, the Binance team will write off this debt by transferring BNB to the lender, which could put pressure on the cryptocurrency price in the future, as the lender will have to liquidate its position in the altcoin to recover the deposit.
