Cryptocurrency developer platform Gitcoin has admitted to losing nearly $460,000 in Gitcoin tokens (GTC) after funds were mistakenly sent to a non-refundable contract address.
On October 6, project leader CoachJonathan posted details about… incident In the Gitcoin Governance Forum. He said the transfer of GTC from the treasury was for the merchandise, memes and marketing budget proposal.
However, instead of moving to a multi-sig address, instead move to a GTC token a contract instead of.
“This left the money stuck in the contract, with no way to recover it,” he lamented.
A total of 521,440 GTC tokens were lost in the commotion. The currency was trading at just under $0.90 at the time, giving the dollar an estimated loss of $461,000.
After the transfer, Gitcoin’s core developers were contacted to explore whether the contract had a withdrawal function or was upgradeable. It was confirmed that there was no option, so the funds were marked as missing.
In light of the incident, the team shared plans to ensure such a mistake does not happen again and create clearer accountability in the event of another incident.
“Large token holders and multi-signatories have a responsibility to be more careful when it comes to handling funds that do not belong to them (including me),” he concluded.
Omar Khan, a researcher at Gitcoin, commented on the forum saying that the DAO could consider the missing tokens as a decrease in GTC supply rather than a loss of treasury funds.
“It’s unfortunate that Crypto UX is really broken if this happens,” moderators said.
This is really sad to see. Effectively burning half a million dollars
Why didn’t any of the voters/signatories notice this? It’s unfortunate that Crypto UX is really broken if this happens pic.twitter.com/DhI7lPaViY
– Lefteris Karapetsas | Hiring at @rotkiapp (@LefterisJP) October 7, 2023
Related: Crypto.com accidentally transferred $10.5 million to customer instead of refunding $100
Gitcoin is a platform for funding Web3 creators looking for open source work. Entrepreneurs and developers can post their projects while donors can browse the list of projects and choose what they want to fund.
GTC price has fallen by 1.1% in the last 24 hours and was trading at $0.889 at the time of writing. Furthermore, the token has fallen a whopping 99% since its May 2021 all-time high of $89.62, according to CoinGecko.
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