- A new report reveals that Stellar has Fixed a counterfeit bug in 2017 and burned all the tokens created as a result
- The bug had created over $10 million worth of tokens
Blockchain, in all its glory, is not infallible and it is fairly common to see various networks, wallets and so on be revealed to suffer from some form of glitch or the other.
Examples of this include the ZCash counterfeit vulnerability and Ethereum Gastoken vulnerability. It is such an accepted part of the industry that exchanges and networks even offer bug bounties in which people are given monetary rewards for exposing flaws in their system. In most cases, there is a public announcement of the bug that was discovered as well as who discovered it.
Then there are cases like the alleged bug fixing and token burning that Stellar underwent according to a March 27, 2019, Messari report.
Kept Under Wraps
According to the report, Stellar was the victim of an inflation bug back in April 2017. This flaw was taken advantage of and 2.25 billion XLM tokens worth $10 million were created. This represented almost a quarter of all the XLM tokens that were in circulation at the time.
Rather than make a public announcement about this, Stellar reportedly fixed it quietly. After the glitch had been taken care of, the illicitly created XLM tokens were disposed of through sales on various exchanges in the first half of 2017.
However, to prevent the value of the non-illicit tokens being affected by this, Stellar burned off the equivalent of the tokens that were sold, removing them from circulation.
After taking care of the bug and its creations, all evidence of the act seems to be wiped off as the addresses and records cannot be found on Stellar Expert but can be found on the Horizon Application Programming Interface.
While the actions on Stellar’s part might seem as though they tried to conceal the matter, a representative of the company says that it is not the case and that the matter was mentioned in the protocols release notes.
The representative said:
“We recognize that Stellar has since become significant financial software, and our disclosure standards have grown to reflect that reality. There’s been no notable bug since, and if there were we would disclose it in full detail as soon as it was patched.”