Lido Finance has revealed a total of 20 slashing events caused by configurator issues from validators operated by Launchnodes. The platform highlighted that the incident took place not too long ago and rendered all of Launchnodes’ validators offline. These slashings have come to a halt and the main cause of the incident is currently being investigated.
The Ethereum blockchain experienced the slashing incident and Lido estimated the total impact to be around the 20 ETH mark. The current impact excludes the additional penalties regarding the validators staying offline, along with the inactivity penalties that the validators would continue to accumulate till they’re restored.
20 slashings have occurred relating to validators operated by the @launchnodes node operators as a part of the Lido protocol.
Launchnodes and DAO contributors are investigating.
The validators are offline and slashings have ceased while the root cause is being investigated.
— Lido (@LidoFinance) October 11, 2023
An earlier post revealed that the slashing happened due to an infrastructure and signer configuration issue. In the same post, the platform clarified that the stakers on the platform were not affected in any way apart from the reduction in daily rewards from the staked ETH.
The staking platform also mentioned that the Lido DAO has an insurance fund of almost 6,230 staked ETH, and this amount would be used to mitigate the effects of the recent slashing. Launchnodes has pledged to reimburse all losses suffered by Lido, whereas the staking platform confirmed that stETH holders would be compensated.
Over time, Lido has established itself as the largest staking protocol. The data shared by DefiLlama clearly indicated that the platform’s total value locked is anywhere around the $13.8 billion mark. A mere 226 validators have been slashed on the Ethereum network since the launch of the Beacon Chain in December 2020.
Lido’s Arbitrum Proposal Divides the Crypto Community
In other news, Lido’s proposal to secure a 5 million ARB grant was subject to criticism from the crypto community. In September this year, the Arbitrum Foundation introduced its Short-Term Incentive Program to distribute 5 million ARB tokens among various projects. A contributor at Lido introduced the grant proposal and its voting is currently expected to conclude on October 13 this year.
Current statistics show that the decision is almost evenly split, with 48.3% voting in its favor, and another 47.4% voting against it. Many have argued that these proposals should focus on upcoming projects that are bound to transform the crypto space as a whole. Others also refused to support the proposal as they believed it would place the neutrality of Ethereum at risk for a small profit.