Gitcoin Loses $460K After Accidentally Sending Tokens to Irretrievable Wallet

Gitcoin Loses $460K After Accidentally Sending Tokens to Irretrievable Wallet

News, Altcoin news

Leading Web3 development platform Gitcoin revealed it accidentally lost roughly $460,000 worth of its native GIT token due to mistakenly sending funds to an irretrievable contract address.

Gitcoin leader CoachJonathan disclosed details of the debacle on October 6th in a project governance forum post.

Botched Token Transfer

According to CoachJonathan, Gitcoin had intended to transfer GIT from its treasury to a multi-signature wallet to fund a proposal.

However, the tokens were erroneously sent to a GIT token contract instead of the correct multi-sig address. This irreversibly locked up the 521,440 GIT tokens with no recovery options.

At current nearly $0.90 valuations, the lost tokens amount to an estimated $461,000 loss. The Gitcoin team confirmed there are no withdrawal functions in the mistaken contract or options to upgrade it to rescue the assets.

Preventing Future Errors

In response, CoachJonathan said Gitcoin will implement measures to avert similar errors and improve transparency around treasury actions by leadership.

He noted that large token holders like himself have a duty to take extreme care when managing community funds entrusted to them.

Viewing Lost Tokens as Supply Reduction

A Gitcoin researcher suggested the lost GIT should be considered a token supply reduction rather than a treasury loss.

By decreasing GIT circulation, the slip up could potentially offset some dilution from ongoing emissions.

While an expensive mistake, the incident highlights the importance of meticulous controls and procedures when stewards handle DAO treasuries and decentralized resources. Gitcoin’s response aims to build integrity and prevent such missteps.