- Gnosis Chain executed a hard fork to recover about $9 million stolen in a November hack.
- A majority of validators updated their software before a Monday deadline, enabling the rollback.
- The decision drew criticism for challenging blockchain immutability and prompted calls for clear rules.
- Gnosis technologists will draft a framework in late January to guide responses to future exploits.
Gnosis Chain completed a hard fork to recover roughly $9 million lost in a November attack on the DeFi protocol Balancer. A majority of Gnosis validators updated their software before a Monday deadline, which allowed the chain to revert the exploiter’s transactions, as shown in an update.
A hard fork is a protocol change that creates a new chain state, often requiring nodes to upgrade. The move restored funds but reopened debate over intervention in blockchain history. Philippe Schommers of Gnosis Ltd. urged validators to upgrade in a forum post, noting the long-term goal that validators “should not be able to censor transactions” and that the community should discuss when to exercise such powers (wrote).
The episode echoes Ethereum’s 2016 response to The DAO hack, when miners reversed the theft of 3.6 million Ether (about $50 million at the time), causing a split that produced Ethereum Classic. Gnosis Chain dates to 2015 and hosts a DeFi ecosystem that ranked 39th by deposits, holding more than $138 million, according to DefiLlama data and the project’s history (launched).
Some community members urged clearer rules. Luca Winter, co-founder of validator operator Serenita, said the hard fork was regrettable and called for ground rules to make future decisions faster and clearer (said). Another participant warned the procedure could erode immutability and bring the chain closer to traditional finance (wrote).
Sebastian Bürgel, vice president of technology at Gnosis, requested input on a post-incident framework and said he will begin drafting it in late January, with plans to submit it to the DAO “if appropriate” (said). Contributors worked to restore funds before Christmas, a process that delayed a compatibility update with Ethereum, now expected in the new year.
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