
The cryptocurrency funding protocol's contract addresses were mistakenly sent to the Gitcoin tokens, causing the funds to become unrecoverable.
On September 29th, on-chain data from Etherscan shows 521,436 GTC tokens sent from Gitcoin's treasury to the protocol's contract address. The fund transfer came after a vote in early September to approve funding for Gitcoin's merchandise, memes, and marketing work stream.
The vote passed, but human error in the execution saw the funds sent to the contract address instead of MMM's multi-signature wallet.
The error on DAO governance forum was an unfortunate situation, Mr. Miller said, while outlining steps to prevent a recurring occurrence.
Gitcoin researcher Umar Khan said on the forum that the DAO could consider the lost tokens as a reduction in the GTC supply rather than a case of funds being lost.
Khan points to the fact that Gitcoin's treasury is the largest GTC tokenholder.
The treasury of the Gitcoin cryptocurrency has $55 million in crypto assets, according to data from DAO analytics tracker DeepDAO. The majority of GTC holdings are currently worth $32 million, but it also owns $10.5 million in Ether and $8 million inUSDC stablecoins.
Kevin Owocki, co-founder of Gitcoin, said the protocol can inflate the token supply by 2% annually.
I think I'm advocating for that at this time, I'm only noting it is an option baked into the GTC smart contract, he said.
I'll be curious if this narrative of 'it's actually GTC burned' is seen as legitimate, Owocki said.
The incident also means MMM is without a source of funding for its activities until October and had to borrow leftover funds to meet some of its outstanding obligations.
A new proposal has been created to request needed funds for the DAO sub-group. The request is for half the previous request.
Osato Avan-Nomayo, our Nigerian DeFi correspondent, is our Nigerian correspondent. He focuses on defi and tech.