Zano has completed an unprecedented one-month blockchain rollback to address an inflation vulnerability. The network reverted to block height 3,833,000, immediately prior to Hard Fork 6, eliminating all transactions confirmed during the preceding month.
The Zano team identified an inflation bug involving Gateway Addresses that permitted unauthorized issuance of both ZANO and fUSD, a dollar-pegged stablecoin. The team confirmed that the vulnerability did not compromise wallet spend keys, ordinary transaction privacy, or the core consensus protocol.
The rollback represents a significant departure from the initially announced plan. Zano previously indicated the fix would involve a one-day chain reversal, but the approved resolution extended to a full month of history.
All transactions confirmed during the rolled-back period will not exist on the recovered chain. Zano stated it is working with affected counterparties to address losses and noted that the rollback cannot affect payments settled on other networks.
The Freedom Dollar project, which issued the fUSD stablecoin on the Zano chain, acknowledged that several million dollars' worth of its assets were exchanged for counterfeit fUSD. The project announced it would absorb the losses from this incident.
Freedom Dollar has directed fUSD holders to pause all token transaction activity until the Zano chain demonstrates stability. The project indicated it will communicate conditions for resuming fUSD services and provide guidance for the full resumption of economic activity.
The decision generated mixed reactions from users, with some noting that the solution effectively distributed losses from affected parties across all users who transacted on the Zano chain during the rolled-back period.
