Crypto developer platform Gitcoin has revealed a significant blunder resulting in the loss of approximately $460,000 worth of Gitcoin (GTC) tokens. The mishap occurred when funds intended for merchandise, memes, and marketing budget proposal were erroneously sent to an unrecoverable contract address, rather than a multisignature address.
This error has left the funds trapped within the contract with no possibility of retrieval.
The incident, disclosed by CoachJonathan on the Gitcoin governance forum on October 6, stated the loss of 521,440 GTC tokens. At the time, the value of the coin was just under $0.90, making the total dollar loss an estimated $461,000.
Efforts to salvage the funds were made by contacting Gitcoin core developers to determine if the contract had a withdraw function or could be upgraded. However, it was confirmed that neither option was available, solidifying the loss.
In response to this costly mishap, the Gitcoin team has outlined plans to prevent such errors in the future and establish clearer accountability protocols in case of similar incidents. CoachJonathan emphasized the need for extra diligence among large token holders and multisignature signers when handling funds not belonging to them.
Gitcoin researcher Umar Khan suggested that the lost tokens could be considered a reduction in the GTC supply rather than a loss of treasury funds by the DAO.
Observers noted that such incidents highlight the broken user experience in the crypto space, emphasizing the need for improved safeguards.
Gitcoin, a platform supporting Web3 builders seeking open-source projects, has seen its GTC token’s value decline by 1.1% in the past 24 hours, trading at $0.889 at the time of reporting. Furthermore, the token has experienced a significant drop of 99% since reaching its all-time high of $89.62 in May 2021, according to CoinGecko.
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