TechFlow reports that on May 22, THORChain officially announced ADR028—a proposal addressing the treasury vulnerability exploit that occurred on May 15 (involving approximately $5.99 million)—and opened voting to node operators.
Regarding the recovery plan: losses will first be absorbed by the protocol’s own liquidity (POL); any remaining shortfall will be borne by synthetic asset holders. POL will be reduced to zero and subsequently replenished gradually using system revenue—no new RUNE will be minted, no RUNE sold, and no dilution of existing holders’ stakes.
Technically, the GG20 mechanism will be retained and patched/updated; trading will resume only after the vulnerability is fixed and successful repositioning is completed. In the future, a more conservative security release cadence will be adopted.
On penalties: innocent nodes are protected; malicious nodes will face full slashing. Recovered assets will be paired with RUNE, and any excess RUNE will be burned. Additionally, the official team has offered a bounty to the attacker in exchange for returning the funds; if only a partial amount is returned, the recovery plan will be proportionally rolled back.
