Core DAO reports validator reward issue and says user funds are unaffected

Validators Accruing Excess Block Rewards

@Coredao_Org disclosed on August 31 that a small number of validators on its network had been accruing block rewards beyond the amount the protocol is designed to mint. The team confirmed certain validators had been credited with excess rewards and stated that the root cause had been identified with mitigations underway. Core confirmed that the reward issuance problem was isolated to validator payouts and did not affect the custody, security, or ownership of user funds.

The team added that a full post-mortem will follow once the issue is contained. No further update had been published at the time of writing.

How Validator Rewards Work on Core

Core is an Ethereum-compatible Layer-1 blockchain secured by "Satoshi Plus," a hybrid consensus mechanism that combines Bitcoin mining hash power with a delegated proof-of-stake system. Validators receive rewards in $CORE tokens for participating in the network's consensus mechanism and producing blocks, with rewards distributed at the end of each round, approximately every 24 hours. There are two categories of validator rewards: base rewards, consisting of newly minted $CORE tokens, and transaction fees. Currently, 90% of rewards are allocated to validators, with 10% directed to the System Reward Contract.

The anomaly, therefore, sits squarely within a reward mechanism that is central to how the network compensates participants for block production. The incident prompted concern among community members after unusual reward patterns were observed, but the network's preliminary assessment found no evidence of a security breach or impact on user assets.

Early identification of such anomalies can allow development teams to investigate before they develop into larger operational or security problems, and clear communication helps distinguish technical distribution errors from genuine security threats. Core's swift public disclosure follows that principle, with the team committing to full transparency once remediation is complete.

Sources:
CoinTrust: Core Blockchain Fixes Validator Reward Issuance Anomaly
Core DAO Official Documentation: Validator Rewards