Bittensor proposes to destroy 10% of the TAO token supply to stabilize the token price

ChainCatcher news, the OpenTensor Foundation (OTF) has initiated a proposal vote to burn 10% of the Bittensor (TAO) supply, aimed at stabilizing the token price in response to a recent vulnerability that led to token losses.

Additionally, regarding the root cause of the attack, the OpenTensor Foundation stated that the attack traced back to version 6.12.2 of the PyPi package manager, where a malicious package was uploaded, compromising user security. This malicious package disguised itself as a legitimate Bittensor package and contained code to steal unencrypted cold private key details. When users downloaded this package and decrypted their cold private keys, the decrypted bytecode was sent to a remote server controlled by the attacker.

Regarding mitigation measures, the OTF team has removed the malicious version 6.12.2 package from the PyPi package manager repository and is conducting a thorough review of the Subtensor and Bittensor code on GitHub to ensure there are no other attack vectors. No additional vulnerabilities have been found so far, and the team will continue to thoroughly review and assess the codebase and conduct a comprehensive evaluation of all other potential attack vectors.

OTF pointed out that this attack did not affect the blockchain or Subtensor code, and the underlying Bittensor protocol remains intact and secure. Once the code review is complete, Opentensor will gradually restore normal operations of the Bittensor blockchain, allowing transactions to flow again.

ChainCatcher previously reported that in response to the Bittensor on-chain wallet attack incident, on-chain detective ZachXBT monitored and found that 32,000 TAO (worth $8 million) were stolen from an address starting with 5FbWTr.