Dragonfly Partner: Zcash Vulnerability Event Overinterpreted by the Market, Most Holders Unaffected

Odaily Planet Daily reported that Dragonfly Managing Partner Haseeb recently stated in a post regarding the recently patched Zcash vulnerability that the market has many misconceptions about the event. He pointed out that even if the vulnerability had been exploited before being fixed, attackers could only profit by forging ZEC within the shielded pool. To bring these tokens into mainstream trading platforms, they would first need to be converted from shielded addresses to transparent addresses. Since the supply of ZEC in transparent addresses can be publicly verified, any abnormal transfer exceeding the maximum supply would be detected and prevented. Therefore, the vast majority of investors holding transparent ZEC and exchange users would not be affected.

Haseeb stated that the Zcash team plans to introduce a new "Turnstile" mechanism and a new shielded pool in subsequent upgrades to verify that there is no inflation issue in the current shielded pool. He also noted that a formally verified cryptographic system can reduce implementation errors from the design level. Finally, Haseeb disclosed that Dragonfly still holds ZEC, and he is personally an investor in ZODL.