Zano has restarted its blockchain from block height 3,833,000, immediately before Hard Fork 6, as part of its response to an inflation bug tied to Gateway Addresses. The project said the issue enabled unauthorized issuance of both ZANO, the network’s native token, and fUSD, a dollar-pegged stablecoin issued on the chain.
The decision removes roughly one month of confirmed transactions from the recovered chain. Zano said the bug did not involve wallet spend keys, ordinary transaction privacy, or the core consensus protocol, but warned that nodes, miners, stakers, and related services must adopt the updated chain for the recovery to work.
Rollback expanded beyond the initial plan
Zano had first said the fix would require a rollback of about one day. In a later statement, however, the team said the chain had already been restarted from block height 3,833,000, a point just before the network’s sixth hard fork.
That revised plan means all transactions confirmed after that height are excluded from the restored chain, wiping out about a month of onchain history. The team described the move as necessary to restore full network integrity after the unauthorized issuance incident.
What the project says was and was not affected
According to Zano, the flaw involved Gateway Addresses and allowed new ZANO and fUSD to be issued without authorization. The project said it found no evidence that wallet spend keys were compromised and said ordinary transaction privacy remained intact.
Zano also said the core consensus protocol itself was unaffected. Even so, the chain restart is a major recovery action, and the project said ecosystem participants must update in order to follow the patched chain.
fUSD issuer reports multimillion-dollar losses
Freedom Dollar, the team behind fUSD, said several million dollars’ worth of assets held by the project were exchanged for counterfeit fUSD created during the incident. It said those losses would be absorbed by the project.
At the same time, Freedom Dollar told fUSD holders to pause all economic activity involving token transactions until Zano confirms that the patched chain is stable. It said it would later provide the conditions for resuming services and a path toward full restoration of activity around fUSD and the Zano network.
Loss accounting and user reaction
Zano said it is working with affected counterparties to account for losses caused during the compromised period. It added that the rollback cannot reverse payments that were settled on other networks, leaving part of the incident’s impact outside the direct reach of the chain restart.
The response drew mixed reactions from users. Some argued that erasing a month of history creates significant complications and effectively spreads the consequences of the incident across everyone who used the chain during that period.
Next confirmed steps for the network
For now, the confirmed path is the restarted chain beginning at block 3,833,000 and the adoption of the update by network participants and services. Transactions confirmed during the erased period are not part of the recovered ledger.
On the stablecoin side, Freedom Dollar has not yet resumed normal activity. The next announced step is for the project to determine when the patched chain is stable enough to restart fUSD services and broader economic activity on the network.
Source: news.bitcoin.com