Summary
This proposal aims to establish a firm deadline of 3 months (August 1st, 2025) for migrating from the old ASTRO.cw20 (terra cw20) token to the new ASTRO.tf (neutron token factory) token. After the deadline, remaining tokens in virtual transmuter pools will be clawed back to the Treasury, and the pools will be deregistered.
Motivation
During the last Terra exploit, an attacker was able to mint ASTRO IBC tokens on Terra and bridge them to Neutron, where they were subsequently dumped on the open market. This exploit occurred because the new ASTRO.tf tokens on Neutron were bridged to match the old ASTRO.cw20 tokens (which represented the majority of the circulating supply) and placed in virtual transmuter pools. The attacker leveraged a bug in Terra’s IBC Hooks module, combined with the balance in the IBC escrow account, to bridge out large amounts of ASTRO.
To better secure the protocol preventing future similar exploits, it is essential to define a migration deadline and claw back remaining tokens to the Treasury.
Implementation
- Signal a migration deadline of 3 months (August 1st, 2025) for users to convert their old ASTRO.cw20 tokens to the new ASTRO.tf tokens.
- After the deadline:
- Claw back all remaining tokens in virtual transmuter pools to the Treasury.
- Deregister the virtual transmuter pools.
- Allow the free market to determine the exchange rate between the old ASTRO.cw20 and new ASTRO.tf tokens.
Conclusion
Establishing a migration deadline will reduce the risk of future exploits, such as the recent attack where large amounts of ASTRO were dumped on the market. It will also allow the free market to establish the peg or price between the old and new ASTRO tokens, ensuring a more secure and stable protocol.
Executable messages
To be done via Builder MS.