Dear CazCoin Community
As you may well know, on the 10th July the CAZ Team noticed a sudden discrepancy in the total coin supply, a large amount of coins being moved, and a dump of well-below market price CAZ on CoinExchange.
The team immediately investigated and within approximately ten minutes notified the exchanges to halt trading and freeze CazCoin withdrawals and deposits.
It was then identified that the chain was manipulated, to the point where a hacker minted approximately 4 million CAZ.
Less than 500,000 CAZ were dumped on CoinExchange for approximately 17 satoshis each — a move that highlights the hacker was not interested in generating money, but attempting to negatively impact the Project.
As a result, the CazCoin team have been working on reversing the minted coins, and thus have reset the chain to block 118819, as well as updated the wallets to mitigate any future attempts at this occurring again.
*Mandatory Wallet Updates*
The new wallet version is 1.2.2 and is mandatory. Any user who continues using the old wallet/s will be minting on the old chain, and thus their new coins will be invalid and unable to be traded.
Please ensure you’ve updated your wallet prior to staking or running your masternode.
New Wallets and Update Guide: https://github.com/copicogithub1/cazcoin/releases
The update guide is available from our Telegram or Discord channels, and will be uploaded to Github soon — please ensure you follow it correctly.
Note: New ‘setup’ guides for new masternodes will be uploaded to www.cazcoin.io in the coming days.
If you are using NODEshare as your masternode host, their procedure is generally to update the wallet on their servers first, then inform their clients of the update and what action is required. After your NODEshare account is reset, ensure your protocol reads 70714 or you will be on the wrong chain.
- Minimum staking time increased from 1 minute to 1 hour.
- Confirmation times of minted coins increased from 51 confirmations to 101.
- A large number of seed nodes added.
- Charges in transaction code and protocol from 70712 to 70714.
Temporary Reward Changes
As a result of our community losing minted coins (from Masternodes or staking) since the hack date, we have temporarily increased the block reward to 50, therefore the individual rewards will be as per the below:
- Masternodes: 42.85714285
- Staking: 7.14284675
We know that this reward increase may not be everyone’s preferred method of ‘compensation’, and that some are more interested in airdrops, but not only will that require further work to set up, it will eat in to the Project’s development fund and be detrimental to progress. Moving forward our stance on this may change and we may implement another compensation method, or we may not. We’re sure that those who believe in the Project will understand and agree.
Resumption of Trading
The following platforms have been advised of the wallet update. The speed in which they deploy the update is solely their responsibility, and the CAZ Team have no authority to change this:
- NODEshare; and
Even though the team have been working hard on reversing the impact of the PoS exploit, work has progressed elsewhere.
To best facilitate our merchants’ requirements of the best possible payment gateways, we temporarily placed CazShop in to maintenance.
Work has not stopped, and merchants can and are continuing to register and upload products in preparation for the reopening.
While the site is in maintenance for gateway implementation, we have used this time to additionally improve the design and cateogry content, images, and general design, to compliment our new CazShop logo. We’ve added over 100 new unique images; from small sizes to large banners.
Furthermore, with the influx of new merchants registering, we have ceased the intended ‘dropship’ model, and will let the sellers organise shipping — a more streamlined process for both sellers and buyers.
Design work has been progressing with CazEx, and the team are extremely happy with the way the exchange looks and will feel to our users — we can’t wait to show you all a preview.
Interviews for a full-time web developer/graphic designer have been completed. The position is now filled and they will begin their role in August, with their focus on the CazShop Project, other work where required.
More information on this will be provided next month.
We planned to release the whitepaper within July, however this has been temporarily pushed-back while the team worked on the aforementioned incident. The whitepaper will be launched once everything is running smoothly.
We know this incident has had a negative impact on you, our community, and all we can say is that we are truly sorry for the disruption and that we will strive to ensure it does not happen again. Thank you for your patience — without you all there would be no CazCoin.
Also, we’d like to thank CoinExchange for their extremely fast action once we notified them of the incident. As a result of their great service, only a small amount of coins were able to be dumped — thank you.