THORChain Releases Latest Recovery Plan: Losses to Be Covered by Protocol-Owned Liquidity, No Additional RUNE Issuance

BlockBeats News, May 22 – According to official sources, following the attack on May 15, the community has developed a clear recovery roadmap. The ADR028 proposal has been published and is awaiting a vote by node operators. Key points are as follows: The protocol will first absorb the losses caused by the attack using protocol-owned liquidity (POL). The remaining losses will be shared among synthetic asset (Synth) holders (specific distribution ratios are still under evaluation). During this process, the protocol-owned liquidity will temporarily drop to zero, but the proposal suggests redirecting a portion of future system revenue to gradually replenish POL. The GG20 TSS solution will be temporarily retained and undergo patching and upgrades. Trading functionality will only resume after the vulnerabilities are fully fixed and the network successfully completes a Churn (node rotation). Moving forward, the protocol will adopt a slower and more security-focused release cadence. Innocent nodes sharing the same vault as the attacker will be protected, while the staked RUNE of the attacker’s node will be fully slashed. Recovered RUNE will be paired with assets recovered from the affected vault, and any surplus RUNE will be burned. THORChain is offering a bounty to the attacker, encouraging the return of funds. If funds are partially returned, the recovery plan will be proportionally adjusted. Additionally, the protocol reaffirms its neutrality and permissionless nature, stating that no scrutiny will be applied to the attacker’s Swap operations once trading resumes. Node operators are currently voting on the overall direction and principles of the proposal. The specific figures in the ADR are currently for reference only and will be adjusted later through the Mimir voting mechanism. The protocol’s primary goal is to restart the network as soon as possible. A vote in favor represents authorization for the development team to continue advancing in this direction. [Original Link]