The post DEGEN tokens may have to relaunch on a new chain as ConduitXYZ holds bridge keys hostage appeared on BitcoinEthereumNews.com.

Degen (DEGEN), the reward token for Farcaster users, may have to relaunch on a new chain, after ConduitXYZ caused a long delay in transaction processing.  Degen (DEGEN), a token for the Farcaster community, may relaunch its chain after a disagreement with its service provider ConduitXYZ. Degen used the service for its rollup infrastructure, and ConduitXYZ ended up holding some of the project’s rollup keys. This meant Degen could not migrate away from the service, even after a bad upgrade caused significant losses.  Initially, the team wanted to migrate the DEGEN L3 chain to another infrastructure provider. Degen also runs a partially decentralized L2 chain, bringing together the Farcaster community with on-chain services. For the past three months, Degen tried to deal with the matter privately, before opening up its problems to the community.  “DEGEN stands ready to create a new chain and remunerate all holders and developers on the original L3. While this is not an ideal path forward, we hope the community can forgive us for trusting too much and erring on the side of kindness,” the team announced in a recent statement about the conflict. On its side, ConduitXYZ offered a contract to migrate with support, avoiding on-chain risks. The service provider presented the contract, signed on their side, but as of the end of October, Degen did not accept the terms.  Degen stated that it did not receive compensation for lost value during the chain downtime in May, and the offer for six months of free services was followed by double payments for the next six months. The unfavorable conditions pushed Degen to look for other solutions.  The Degen community stood behind the project, suggesting ConduitXYZ has not been honest in offering its services and not accepting other terms of payment or offboarding. For now, Degen has…

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Filed under: News - @ November 7, 2024 9:21 pm