1.1M $S allocation request to SonicIndia validator to cover the loss due to Fantom beta wallet

General
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Introduction:

I “SonicIndia validator 29 (previously FantomIndia validator 48)” lost 1.1 mil FTM of self stake on my validator node due to a bug and functionality gap in SFC contract and Fantom beta wallet.

This governance proposal is to request Sonic Labs and fellow validators to vote for the recovery of burned stake.

Precursor to the incident:

  • Due to my passion towards Fantom, I have been doing beta testing whenever a new Fantom product or module is launched.

  • I have thoroughly tested Artion when it launched and reported 12 issues/enhancements.

  • In the same vein, started testing Beta Fwallet when it launched as I am part of “Fantom fwallet support” telegram group

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  • I like the interface very much so I bookmarked beta wallet it an started using it for claiming and compounding rewards. Again only in the interest of supporting Fantom new products and also due to confidence I have the on the UX design.

Incident (Jan 11th 2022):

  1. I checked my self-stake it was 3k FTM over 3mil round figure.
  2. I thought let me round it to 3mil FTM so I have clear calculation regarding the 15x delegator stake limit.
  3. So my objective was to undelegated 3kFTM.
  4. I went to my fwallet bookmark (which was beta fwallet) and clicked on Undelegate, it showed option to Unlock and Claim rewards with penalty warning. There was no place to input how much to unlock or the amount of penalty/slashing applied
  5. Due to my confidence in UX design also my prior experience with fwallet, I came to conclusion that there will be a next screen where I can input the amount of FTM unlock and also it would display the penalty. I have signed the transaction.
  6. Beta vs Pwa wallet – undelegate screen

7. In next screen it showed my stake reduce from 3mil FTM to 1.8 mil FTM, that’s a loss of 1.15mil FTM.

8. Transaction has been reverted for some reason, root cause to be identified.

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9. Calculation regarding the penalty of almost 40% of total stake (1.15mil FTM out of 3mil FTM) is yet to be identified

Request to Sonic Labs:

1. Based on research it is identified that penalty has been applied for all 3 years validators rewards instead of current year due relock function bug, also Beta wallet doesn’t have functionality gap that doesn’t allow to input undelegation amount. Fantom team fixed the beta wallet after I reported the issue.

2. Please consider my 5 years of contribution of validator and community member to recover the lost funds.

3. I came to know many stakers are now able to withdraw without penalty if they have staked before APR reduction from 13% to 6%, since I have been relocking since 3 years (my initial lock was in Nov 2020)– I request you to apply same provision me as a valued contributor of the ecosystem.

4. I have already explained my personal family medical situation with documentation proof to Mike and Quan (CTO at that time) for consideration.

5. I have been following with Mike Kong for the past 3 years almost once a week that’s 150+ weeks of follow up. Before the Sonic migration Kong mentioned that team can upgrade SFC to retrieve burned 1.1 mil tokens by minting fresh on Sonic network. For some reason , he changed his mind and informed it’s not possible right after Sonic migration.

6. I would like to request new management and fellow validators to consider the proposal to help recover burned amount.

1 Like
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Bumping this, think it deserves a reply from SL.