DEGEN L3 Infrastructure Faces Migration Issues
The $DEGEN token team alleged ongoing difficulties with Conduit’s blockchain service, delaying key developments and impacting the community and its L3 in a message shared with the community on Thursday.
The Deets: Major Frustrations
- Extended Downtime: DEGEN L3 suffered 54 hours of downtime due to an unannounced update from Conduit.
- Community Impact: $160,000 in user funds lost, and bridge volume dropped by over 75% following the incident.
- Ownership Issues: Conduit refused to release rollup keys or take accountability, leading to continued operational delays.
- Unresponsive Support: Attempts to migrate to a new provider have stalled for months due to Conduit’s refusal to sign the migration contract.
The Bulk
The team behind the DEGEN token reports it is navigating serious challenges after Conduit, its current blockchain service provider, caused a chain disruption that resulted in significant community losses. According to a message shared by the team, in August, Conduit implemented an untested update to the DEGEN chain without prior notification.
This action led to 54 hours of downtime, corrupting transaction order and chain state, and ultimately caused the loss of $160,000 in user funds. The chain, previously processing over $200,000 in daily bridge volume, saw this metric decline by 75% following the disruption.
Allegedly, in the aftermath, Conduit not only denied responsibility for the incident but also failed to support the recovery of user funds, offering only six months of free service and an increased rate in return. The team claims it has made multiple attempts to negotiate for the required access to these keys, but negotiations have been consistently delayed or halted.
Back It Up
Conduit initially partnered with DEGEN to manage its blockchain operations, but the team claims it failed to provide the necessary stability and support.
Founder Feedback
After much careful consideration and soul-searching, we’ve decided to share with the community the difficulties we’ve been facing in migrating the DEGEN L3 blockchain to a new service provider, which has delayed some really exciting features we have in the works. We know this impacts all of our community members most of all, and so we believe it's important to be transparent.DEGEN Founders
🔜 What's Next?
DEGEN has made plans to create a new chain and compensate holders if Conduit continues to obstruct the migration. The team will update the community on Conduit’s response and any further developments in the transition.
For more web3 and NFT news, visit the Lucky Trader newsfeed.
