Observing the current scenario from an external standpoint, it’s evident that immediate action needs to be taken by the Fantom Foundation to address the fallout from the recent multichain exploit and restore stability to the Fantom ecosystem. The solution should be designed not only to aid in the restoration of deployed projects, but also to stimulate growth and innovation in the network. One strategy could be:
Asset Validation and Assessment:
Fantom Foundation should acknowledge and validate the loss incurred by users and protocols due to the hack, which resulted in the devaluation of major assets. Implement a review / audit to understand the total damage in a quantifiable manner, perhaps publish a post mortem or some sort of audit report.
Establish a Network Steering Committee:
Set up a dedicated Steering Committee (SC) within the Fantom Network that includes representation from the impacted protocols as well as the foundation. This committee will provide a platform for technical discussions and coordinate a collaborative recovery plan across the ecosystem.
Incentive Allocations for Liquidity Yield:
To restore lost value, the Foundation should commit a certain number of FTM tokens (e.g., X,XXX,XXX FTM) as incentives. Distribute these through the respective DeFi platforms using smart contracts to ensure transparency. This will also aid users in partially recovering their losses but will require liquidity to move on network to acquire yield.
Provision of Technical and Financial Support:
Extend an offer to the impacted protocols for a one-time financial support for redeployment of their protocol with newly issued lz/axl assets. Additionally, provide technical support to these protocols for redesigning and re-implementing their systems if needed. This will give them the necessary breathing space to outline their recovery strategies / figure out a reasonable path forward.
Reestablishing Trust with Network Protocols by Communicating Directly
Design a systematic and regular communication strategy with users and protocols. Frequent updates on recovery progress, new measures, and future plans will help rebuild the trust.
Strengthening Network Infrastructure:
Implementing more robust on-chain security measures is critical. This might include more robust smart contract audits, enhanced user verification protocols, and more secure bridging protocols. The foundation might also consider establishing partnerships with leading blockchain security firms to further strengthen its security posture and give external users/protocols confidence to deploy onchain.
Encouraging Innovation and Network Expansion:
To catalyze network growth, invite novel and innovative projects to the chain. Implement a rigorous vetting process and provide necessary technical and financial support to promising projects. This will not only revitalize the network but also attract new users and developers.
Conclusion: I’m not even sure if the above will help fix the situation or if it is something that can be overcome. Users have been absolutely annihilated repeatedly on fantom with only hard core fantom fans being left here (even then many have left). Liquidity is not flowing to the network, now is the time to act. Not sure what the answer is but not having a public plan that is clearly communicated to the community is not the answer.