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Flow Foundation Ditches Rollback Plan After Community Pushback

Key Takeaways

  • Flow canceled its blockchain rollback plan after users warned it could harm decentralization and trust in the network;
  • The $3.9 million exploit led to a 20% drop in Flow’s token value before the foundation revised its recovery strategy;
  • Flow’s updated plan freezes affected accounts and will gradually restart operations, including its Cadence chain.

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Flow Foundation Ditches Rollback Plan After Community Pushback

The Flow Foundation has dropped its plan to roll back the Flow blockchain after many community members raised concerns about decentralization and network security.

The decision followed a $3.9 million exploit reported on December 27 that caused the Flow FLOW $0.0870 token to lose over 20% of its value within a day.

By December 29, Flow confirmed that it would not proceed with the rollback.

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Alex Smirnov, founder of bridge provider deBridge, announced in a post on X that there would be “no rollback” or chain reorganization in the revised recovery plan. He had called the original idea a “rushed decision” that risked causing greater financial loss.

Flow released a new recovery plan outlining several stages to restore operations. In the first phase, accounts affected by the attack were temporarily frozen, and Ethereum ETH $2,964.35 Virtual Machine (EVM) actions were made read-only to prevent further damage.

The team stated, "There will be no chain reorganization. All legitimate transactions that occurred prior to the halt remain valid and will not require resubmission or reconciliation".

According to Flow, completing the recovery steps will take several days. Once the first stage is done, the network plans to restart Cadence, its non-EVM chain, and reopen links between the bridge and exchanges.

Meanwhile, a technical issue in Prysm, one of Ethereum’s key consensus clients, recently caused an unexpected network slowdown. What did Ethereum developer Terence Tsao say? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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