Cosmos Hub voters move to veto 1.2 million ATOM refund proposal

Cosmos Hub voters are overwhelmingly moving to veto Proposal 1056, titled ‘ATOM Refund & Justice Bounty.’ The proposal seeks to distribute 1.72 million ATOM from the Hub’s community pool, which includes 1,221,120 ATOM intended for an address linked to the recent Neutron governance attack and a 500,000 ATOM ‘justice bounty’ for voters who support the measure.

As of September 25, approximately 95% of the 69.3 million ATOM cast in the vote supported the ‘No with Veto’ option. The proposal stems from an incident where an attacker gained control of contracts connected to Astroport and Drop via a Neutron governance exploit. Following a network restart, validators moved roughly 1.227 million ATOM from the attacker-linked wallet into a 4-of-6 multisignature wallet controlled by Nansen, Keplr, Enigma, Silknodes, Kiln, and Polkachu.

The Cosmos Hub team has stated that the incident did not result from a vulnerability on the Cosmos Hub itself. Additionally, the proposal has faced scrutiny because the address requesting the funds differs from the address where validators had previously secured the recovered assets. The proposal will fail if the ‘No with Veto’ votes exceed 33.4% of the total, provided the voter turnout reaches at least 40% of staked ATOM.