Core DAO confirmed that a limited number of validators exploited a flaw in the blockchain's reward distribution mechanism to claim tokens beyond the protocol's designed issuance schedule. The organization classified the behavior as malicious and is coordinating an emergency hard fork to patch the vulnerability.
Core's blockchain operates on Satoshi Plus, a hybrid consensus mechanism that blends Bitcoin's delegated proof-of-work with delegated proof-of-stake. Under this system, up to 90% of newly minted CORE tokens flow to selected validators based on a scoring formula. The exploit leveraged a flaw in this formula to generate excess rewards.
Details of the Hard Fork
The emergency upgrade is a forward-only patch designed to prevent future exploitation. Core DAO emphasized that no transactions will be reversed, no blocks will be rolled back, and the network's existing state remains intact. The fix targets only the reward distribution mechanism.
Core DAO stated that user assets, network security, and custody systems remain unaffected by the exploit.
Exchange Actions and Supply Concerns
Coinbase paused CORE sends and receives on August 31, 2026, though token trading continued. LBank suspended deposits, citing project requirements.
The primary concern centers on oversupply. CORE has a hard cap of 2.1 billion tokens, with approximately 40% allocated to node mining rewards distributed over an 81-year emission schedule. The exact volume of excess tokens minted during the exploit remains unclear, leaving traders uncertain about the token's actual supply dynamics.
Next Steps
Core DAO holders should monitor two critical developments: a precise accounting of excess tokens minted during the exploit and the execution of the hard fork itself. The scale of excess tokens relative to circulating supply will determine the impact on the project's tokenomics, while a smooth upgrade would demonstrate operational competence in addressing the vulnerability.
