The Zano team announced on Tuesday that a hotfix has been applied and the network is stable following an inflation bug discovered on Friday. The blockchain was rolled back to block 3,833,000, erasing 30 days of previously confirmed transactions.
Third-party infrastructure providers, exchanges, and payment services must update their nodes to the updated chain before resuming transaction processing. The Zano team said it is in contact with these providers and urged users to wait for official confirmations before sending funds.
Details of the Incident
On Friday, the Zano blockchain encountered an inflation bug tied to Gateway Addresses. Initially, the development team indicated a one-day rollback would be necessary, but the scope expanded significantly by Saturday, with plans for the 30-day rollback confirmed.
On Tuesday, Zano provided guidance for users to update their iOS, Android, and desktop wallets to the updated chain.
Recovery Plans and Market Impact
The Zano team stated that more details on the recovery process for affected users would be delivered soon. Each exchange and service provider is expected to announce resumption of operations through its own official channels.
ZANO's price declined 4% against the U.S. dollar over the previous day as of Tuesday. The token has fallen 32% over the past week and is down 40.6% year-to-date.
Historical Context
Blockchain rollbacks are not unprecedented. Bitcoin rolled back 53 network blocks during the 2010 Value Overflow Incident. Other networks including Bitcoin Gold, Bitcoin SV, Verge, Monero, Horizen, and Ethereum Classic have also logged rollbacks, with Ethereum Classic rolling back over 7,000 blocks in 2020.
