Proposal for Capping ACX Token Supply by Across Protocol
Hart Lambur, co-founder of Across Protocol, recently disclosed plans to impose a cap on the supply of the ACX token, limiting it to 1 billion tokens. This proposal follows concerns regarding a possible vulnerability in the contract of the token.
On October 21, Lambur addressed these issues through a post on X, clarifying that allegations of a critical flaw in its ERC-20 token structure were unfounded. While he admitted that the architectural choices could have been enhanced, he firmly stated that the vulnerability assertions were incorrect.
Introduction of a Fixed Supply Limit
Lambur proposed a fixed total of 1 billion tokens for ACX. This adjustment would not necessitate altering the ACX smart contracts and would include renunciation of Across Governance’s authority over the token. Consequently, this measure would guarantee that the token’s supply could neither be increased nor decreased through minting or burning actions.
The detailed proposal highlights the advantages of this approach:
“This plan to cap ACX supply at 1 billion tokens is aimed at solidifying the economic viability of the Across ecosystem. We believe this change will provide stability and foster growth for all stakeholders involved.”
A Brief Overview of Across Protocol
Across Protocol operates as a cross-chain token bridge, leveraging UMA’s optimistic oracle for security. As noted on the protocol’s official site, it has successfully carried out over 9 million transactions, aggregating more than $12 billion in value.
Concerns Regarding Vulnerabilities
The timing of Lambur’s proposal coincided with remarks from Bryan Pellegrino, co-founder of LayerZero Labs, who had raised alarms regarding potential flaws within the ACX token contract. Pellegrino pointed out that the protocol had inadvertently left an internal function exposed in its ERC-20 implementation, potentially allowing the withdrawal of tokens from any wallet. He cautioned that this vulnerability could result in catastrophic losses for users.
Furthermore, Pellegrino argued that this issue might enable both Across Protocol and UMA to create tokens without restrictions. He recommended transferring ownership to a new smart contract designed to eliminate issues of burning or infinite minting.
In response, Lambur dismissed Pellegrino’s warnings as “disingenuous fear-mongering,” standing firm on the integrity of the ACX token structure.
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