A validator reward failure on Core DAO triggers exchange transfer blocks and leaves token issuance in question

According to reporting by CryptoSlate, a validator reward failure on Core DAO led certain validators to receive excess CORE rewards. The project stated that user assets, network security, and custody remained unaffected, and it identified the root cause while working on mitigations. However, Core DAO did not disclose the technical cause, the amount of excess rewards, or the specific validators and reward rounds involved.

In response to the issue, cryptocurrency exchanges implemented transfer restrictions. Coinbase paused CORE sends and receives, though buys, sells, conversions, and fiat transactions remained unaffected. Separately, LBank suspended CORE deposits based on the project's requirements, giving no restoration time.

Core DAO tokenomics feature a 2.1 billion fixed supply cap, which includes an 81-year node-mining allocation. Because validator rewards normally consist of newly minted tokens alongside transaction fees, the anomaly left open questions regarding whether scheduled future rewards were accelerated or if extra issuance occurred outside the planned path. Core DAO promised to release a postmortem after containing the issue.