VeChain stakeholders vote for blocking the stolen 1.1 million VET

  • The first all-stakeholder vote on the VeChain Thor Blockchain is closed. 99.06% voted to block the addresses of the stolen 1.1 million VET.
  • Furthermore, the VeChain Foundation has published a new financial report.

The VeChain Foundation has started the first decentralized voting on December 25, 2019. During this vote all VeChain Thor stakeholders could vote on whether the stolen VET tokens of the hack should be burned and thus withdrawn from circulation. As reported by CNF, unknown attackers were able to steal 1.1 million VETs from the buy-back wallet on December 13, due to the mistake of an employee of the VeChain Foundation.

A total of 469 VET addresses were affected by the hack. The addresses were blocked after identification by an emergency patch, VeChainThor v1.1.5, so the hackers had no chance to sell the VET. The patch was initially approved by the VeChain Foundation Steering Committee. However, as part of the decentralized approach, the VeChain stakeholders were also supposed to vote on the measure.

The first “all-stakeholder vote”, where all Authority Master Nodes, X Nodes and Economic Nodes could vote, ended yesterday. As the results show, the VeChain community voted unanimously for the permanent implementation of the black list introduced with VeChainThor v1.1.5. The VeChain Foundation thanks all participants (freely translated):

We would like to thank all the participants involved in the voting process, including Authority Masternodes, Economic X Nodes, Economic Nodes, and even non-Node holders which engaged in the conversation on social media for the mutual civility and respect shown during the voting process.

As the Foundation writes, by the end of the all-stakeholder voting process, the required participation rate of each stakeholder category of 15% had been achieved. Between block #4,677,898 and block #4,721,015 a total of 1,410 valid votes were cast. An overwhelming majority of 99.06% voted for the permanent implementation of address blocking, while only 0.94% voted against it.

In detail, 53.47% of the holders of the Authorities Masternodes voted and casted 54 votes. 19.00% of the owners of Economic X Node took part in the vote and were responsible for 848 votes. 17.70% of the holders of Economic Node submitted their votes and were responsible for 508 votes.

Based on the final result the VeChain Foundation will publish another update in the coming weeks to implement a permanent blockage of the affected addresses. This means that a total of 727 million VET will be permanently withdrawn from the market.

The VeChain Foundation presents financial report

Yesterday the VeChain Foundation presented its ninth financial report for the period August 2019 to October 2019. According to the report, the circulating supply is 63,439,279,106 VET, which is about 73.2% of the total supply. As part of the outstanding supply of, 22,161,653,627 VET were in a soft lockup, which was approximately 25.6% of the total offer.

In addition to the team lockups, X Nodes and Economic Nodes have increased their holdings, “demonstrating the continued long-term confidence of key stakeholders in the VeChain ecosystem”. At the end of the reporting period, approximately 47.6% of the total VET offer was tradable on the open market, as shown in the chart below.

vechain vet

Source: https://medium.com/vechain-foundation/vechain-financial-executive-report-vol-9-edefcbac4bcc

VET’s price has suffered somewhat from the hack described above and has recorded a minus of 7.57% in the last 7 days.

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About Author

Jake Simmons has been a crypto enthusiast since 2016, and since hearing about Bitcoin and blockchain technology, he's been involved with the subject every day. Beyond cryptocurrencies, Jake studied computer science and worked for 2 years for a startup in the blockchain sector. At CNF he is responsible for technical issues. His goal is to make the world aware of cryptocurrencies in a simple and understandable way.

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