Flow Scraps Rollback Plan after Pushback over Decentralization, Security

The Flow blockchain has faced significant challenges following a $3.9 million exploit that raised serious concerns among its community. In a recent development, the Flow Foundation announced it would not pursue a rollback of the blockchain, a decision that came after substantial pushback from users regarding issues of decentralization and security.

Flow Foundation abandons rollback proposal after community backlash

The Flow Foundation was initially considering a rollback of its layer-1 blockchain to address the exploit. However, after receiving a wave of criticism from the community, the foundation decided to scrap this proposal. Alex Smirnov, founder of the bridge provider deBridge, confirmed in a post that there would be 'no rollback' and no reorganization of the blockchain as part of the recovery efforts.

Community reacts positively to revised recovery plan and implementation

Despite the exploit, many users have responded favorably to the updated remediation plan. The Flow Foundation released a technical implementation strategy that includes temporarily restricting affected accounts and ensuring that Ethereum Virtual Machine (EVM) operations are read-only during the initial recovery phase. Flow emphasized that there would be no chain reorganization, assuring users that all legitimate transactions prior to the halt would remain valid without needing resubmission.

Details of the recovery plan and expected timeline for implementation

The recovery plan is set to roll out in phases, with the first phase already underway. According to the timeline provided by Flow, the blockchain is expected to relaunch its non-EVM chain, Cadence, and resume operations between the bridge and exchange soon. The implementation process may take several days, and the community is awaiting further updates from the network within the next 24 hours.

Impact of the exploit and recovery plan on Flow token price and market

The $3.9 million exploit has had a noticeable effect on the market, with Flow's token experiencing a decline of over 20% in value within 24 hours of the incident. At the time of reporting, the token was priced at $0.11. The community is hopeful that the new recovery plan will help stabilize the token and restore confidence among users and investors alike.

In summary, while the situation remains fluid, the Flow Foundation's decision to abandon the rollback proposal reflects a commitment to decentralization and security, key concerns raised by the community. As the recovery plan unfolds, stakeholders are keenly watching for updates that will shape the future of the Flow blockchain and its ecosystem.