THORChain Post-Mortem Update: Protocol Will Absorb Losses Through POL, Attacker Nodes Fully Slashed

Odaily reports that THORChain has released its fourth update regarding the Asgard vault breach, publishing ADR028 and opening the vote for node operators. The proposal indicates that the protocol will first absorb losses through its Protocol-Owned Liquidity (POL), with the remaining portion to be borne by synthetic asset holders. The exact allocation ratio is still under evaluation. The POL will be reduced to zero as a result, and the proposal suggests directing a portion of system revenue towards its gradual replenishment. This plan does not involve minting new RUNE, selling RUNE, or diluting holder equity.

On the technical side, the GG20 version will be temporarily retained and patched for the upgrade. Trading will resume after the vulnerability is fixed and node rotations are successfully completed. A slower, more security-focused release cadence is planned for the future.

Regarding slashing, unrelated nodes sharing a vault with the attacker will be protected, while the attacker's nodes will be fully slashed. The recovered RUNE will be paired with recoverable assets from the affected vaults, and any excess RUNE will be burned.

Furthermore, THORChain has offered a white-hat bounty to the attacker to facilitate fund recovery. If a portion of the funds is returned, the recovery plan will be adjusted proportionally. THORChain emphasizes its commitment to neutrality and permissionlessness, stating it will not censor the attacker's swap activities after the network resumes.

Currently, node operators are voting on the overall direction and principles of the proposal. The specific figures in the ADR are indicative and will be subject to adjustment via the Mimir mechanism later. The goal is to restart the network as soon as possible. A 'yes' vote signifies that developers may proceed with this direction.