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Following
CORE Emergency upgrade fixes verifier vulnerability, Core DAO officially shuts down serious flaws in reward distribution system
Core DAO has completed a hard fork upgrade of v1.0.26 version on the main network, marking that the serious vulnerability problem exists in its network reward distribution system has been formally resolved. According to the Core team, the upgrade was successfully executed without any transaction rollovers and without loss of user funds.
The incident was first exposed on August 31, 2026. At the time, Core disclosed that a small number of verifiers received block rewards that were significantly higher than the expected amounts stipulated in the agreement. After further investigation, the project party characterized the behavior as a malicious operation rather than an accidental profit. The results showed that a limited number of validators discovered how to exploit loopholes in the reward allocation mechanism to obtain tokens outside of the issuance plan envisaged in the agreement.
The Core team took quick action to contain the situation. As of September 1, the team confirmed that the malicious verifier was no longer able to withdraw the excess reward and began to coordinate with a wider range of verifier nodes to deploy permanent repairs.
Supply Impact and Future Outlook
As a direct consequence of the remediation measures, this hard fork permanently reduced the total supply of more than 150 million $CORE tokens through a protocol-level destruction mechanism. The Core team confirmed that this upgrade is only a forward-compatible change, meaning that previously confirmed transactions have not been revoked and the current state of the network remains intact.
It is expected that within 48 hours after the fork is completed, the pledge rewards will return to normal levels. The project party has always emphasized that this issue is limited to the reward issuance process and user assets are not at risk. Currently, a comprehensive technical post-event analysis report is still in progress.
This incident also triggered a broader market reaction. On August 31, 2026, Coinbase suspended the deposit and withdrawal services of $CORE, but token transactions on the platform continued. While other exchanges are also restricting deposits and withdrawals while the situation is resolved, the market as a whole is in a wait-and-see state.
