The Sui blockchain is underneath rising scrutiny after backing a controversial proposal from DeFi platform Cetus Protocol to get better $162 million in frozen belongings.
This choice follows a Could 21 incident wherein Cetus misplaced over $223 million to a hacker. In response, greater than a 3rd of Sui validators froze a portion of the stolen belongings by refusing to course of transactions from two wallets believed to be tied to the attacker.
Sui’s Assist for Cetus Plan Raises Questions on Decentralization
Cetus supplied the hacker a $6 million bounty to get better the remaining funds. Nonetheless, the provide has drawn sharp criticism from group members who argue it’s too low.
On the identical time, Cetus is pushing for a protocol improve to return the frozen funds. The proposal goals to attain this with out altering historic blockchain information or rolling again transactions.
Whereas this method is framed as a compromise, it has triggered debates over the integrity of Sui’s decentralization.
In the meantime, the Sui Basis has agreed to help an on-chain vote however acknowledged it’ll stay impartial and abstain from collaborating.
“Earlier today, Cetus called for a community vote on a protocol upgrade to return the frozen funds, without rolling back chain history or reversing transactions. This is an extraordinary request in response to extraordinary need–Cetus’s customer funds are at stake. After consideration, we support their call for an on-chain vote,” Sui acknowledged.
The Basis additionally acknowledged that Cetus should use all its accessible monetary assets to compensate affected customers till it repays all losses.
Critics warn that freezing sensible contracts might be problematic even with out reversing the chain. They argue that censoring transactions might also undermine the precept of blockchain immutability.
Sui’s Bounty Supply Attracts Outrage
In the meantime, the Sui Basis’s choice to supply a $5 million reward has sparked additional controversy. The bounty targets anybody who can present data resulting in the hacker’s identification.
On-chain investigator ZachXBT known as the bounty “vague” and unhelpful. He argued that such presents solely pay upon success and fail to compensate the numerous effort and time that investigators make investments upfront.
Yu Xian, co-founder of blockchain safety agency SlowMist, additionally criticized the provide. He warned that except a hacker willingly returns the funds or faces stress to take action, investigators typically find yourself in extended chases with little hope of decision.
“The investment cost of tracking services is very uncertain, such as threat intelligence cooperation network resource coordination, stolen user communication, law enforcement communication, investigation and evidence collection, evidence fixation, negotiation promotion, analysis reports, etc. If there is no upfront cost or deep enough cooperation resources to guarantee, it is difficult to continue to advance,” Xian added.
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