Core DAO has successfully completed its emergency hard fork to fix a critical validator reward bug that allowed some validators to receive block rewards exceeding the protocol's intended limits. According to BitcoinWorld, the hard fork was designed to fix the bug without requiring any action from token holders, and exchanges have resumed deposits and withdrawals once the network upgrade was confirmed stable. The project had previously confirmed on September 1 that it had contained the issue and stopped what it described as 'malicious validators' from drawing further excess rewards. Core has maintained that user assets were not affected and said the problem involved the issuance of validator rewards only, with the incident being limited to reward issuance only and user assets remaining safe throughout the entire process.
Major centralized exchanges have resumed normal CORE operations following the successful completion of the emergency hard fork. As reported by BitcoinWorld, Coinbase has resumed sends and receives on the Core DAO network, with trading functions remaining available with buys, sells, conversions and fiat transactions unaffected. South Korean exchanges Bithumb and Coinone have also restored CORE deposits and withdrawals after suspending them as a precautionary measure during the incident. Bitget has resumed CORE deposits and withdrawals, while LBank has restored deposits following the project requirements. For everyday CORE holders, the hard fork was expected to be seamless, with exchanges likely to resume normal operations once the upgrade was confirmed stable. Users were advised to stay informed through official channels and avoid any transactions during the transition window if uncertain about the network's status.
Core has not published an activation time for the upgrade or disclosed the technical vulnerability that allowed the excess rewards to be claimed. According to BitcoinWorld, the hard fork required coordination among validators and exchanges to ensure a smooth transition, as it required a majority of validators to upgrade their software. Any delay could have led to chain splits or inconsistent states. The bug specifically affected validator rewards, which are a core component of the network's incentive structure, and could have led to an unfair distribution of rewards and potential economic imbalance. The distinction between a forward upgrade and a rollback means the planned fork was intended to change the network rules from a specified point without rewriting transactions already recorded on the blockchain. Core has committed to publishing a technical postmortem to explain the vulnerability that enabled the validators to obtain the rewards.
Core has spent the past several years building its network around Bitcoin staking and decentralized finance applications. In March 2025, Core integrated with Cobo to expand its dual Bitcoin staking service for institutional users in Asia, allowing Cobo users to stake Bitcoin and CORE while earning BTC-denominated yields. At that point, institutions had used Core to stake more than 6,200 BTC, while more than 150 Ethereum Virtual Machine-compatible decentralized applications had been integrated into the ecosystem. Core's total value locked stood above $525 million when the partnership was announced, making it one of the largest Bitcoin sidechains by locked value.
Core's emergency hard fork response demonstrates a commitment to network integrity and responsible governance in addressing critical technical issues. According to BitcoinWorld, the swift acknowledgment of the problem and the decision to implement a hard fork reflects a responsible governance model, with the transparent handling of the issue likely to strengthen the network's credibility in the long run. The incident highlights the challenges of maintaining decentralized networks, where bugs can have widespread effects, and underscores the importance of robust testing and rapid response capabilities. While the temporary suspension of CORE on major platforms caused some disruption, Core DAO's proactive approach to fixing the validator reward bug and coordinating an emergency hard fork reflects a responsible governance model that should support crypto adoption and user confidence in the network's future.
