Core DAO validator reward over‑issuance prompts exchange transfer blocks

Core DAO disclosed that a small group of validators received rewards higher than the protocol’s intended amount. The excess issuance concerns the CORE token supply, as validator rewards normally include newly minted tokens.

Impact on exchanges

Coinbase paused both sending and receiving of CORE at 04:41 UTC on Aug. 31, while LBank suspended CORE deposits at 05:00 UTC. Coinbase indicated that buying, selling, conversion and fiat transactions were unaffected. LBank’s notice did not mention withdrawals or trading restrictions.

Project response

Core DAO said it had identified the root cause, is implementing mitigations, and that user assets, network security and custody remain unaffected. The project did not disclose the amount of excess CORE, the validators involved, or the specific technical trigger. A post‑mortem will be released after containment.

Tokenomics context

CORE’s token model defines a fixed supply of 2.1 billion, with 839.9 million allocated to node mining over 81 years. Validator compensation combines newly minted CORE block rewards with transaction fees, with 90 % allocated to validators and delegators and 10 % to the System Reward Contract.

Unresolved questions

• How much excess CORE was minted and whether it accelerates scheduled emissions.
• Whether the over‑issued rewards can be clawed back, burned, or will affect future inflation.
• The precise relationship between the reward anomaly and the exchange restrictions.

For now, reward issuance exceeded the protocol’s intent, exchange access remains limited, and the ultimate supply impact is unknown.