Axie Infinity user losses will be compensated
Sky Mavis, the creators of the popular blockchain game Axie Infinity, have initiated a fundraising process to compensate for the losses that the project received as a result of a hacker attack on the Ronin network.
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Recently the cybercriminal managed to withdraw an incredible sum of $650 million.
Animoca Brands, Binance, a16z, Dialectic, Paradigm took part in the first investment round. Including Sky Mavis’ balance sheet funds, $150 million was raised. Thus, about 20% of users can already count on the return of their assets.
Sky Mavis also announced the introduction of new strict measures of internal security in order to prevent similar attacks in the future. The Ronin bridge will remain closed during the investigation.
One of the factors that led to the hack is the limited number of validators. It is obviously easier to compromise a network with a small number of nodes. The team acknowledged that the choice of this transaction confirmation model was driven by the “race for massive introduction.”
Over the next three months, the group of validators will increase to 21 nodes, which will be selected from the most committed and authoritative members of the community. At the same time, the bridge will work again only after repeated audit and testing.
Funds from the Sky Mavis treasury (56,400 ETH tokens) will remain on bail while security forces will work to find the stolen assets. In case of inability to restore the status quo, DAO Axie will determine the distribution of this fund by a joint decision.
The Binance exchange is now determining the level of reputation losses from this case, because the project was launched on Binance Launchpad. Probably, that is what (and by no means charitable purposes) caused CZ’s personal participation in the investigation and compensation for losses.
Axie Infinity continues to be the most popular blockchain game in the Play-To-Earn sector with over 2.2 million players. The number of downloads of the Ronin wallet has exceeded 3 million, and the NFT trading volume on the platform is surpassed only by the absolute leader Ethereum.
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