We propose a one-time restorative action plan for an early investor whose tokens were uniquely locked at the State Chain FLIP Gateway level due to a mistake made during the staking process.
This proposal is a refined and clearer version of thepreviously withdrawn proposal, incorporating community feedback and addressing past misunderstandings.
To address this, we recommend reassigning the existing locked tokens within the State Chain FLIP Gateway to the correct accounts, without minting or burning additional tokens. This reallocation will be managed in a way that maintains community trust and includes a reallocation fee to support both community and project development.
Background
During Chainflip’s bootstrapping phase following the FLIP token launch on November 23, 2023, errors in our staking process resulted in tokens being sent to non-existent validator addresses. The complexity of the process, combined with miscommunication and inadequate safeguards, led to this issue. Specifically, the following factors contributed:
We failed to ensure clear instructions, leading to confusion and mistakes.
We made assumptions without thoroughly verifying staked amounts after transactions were submitted.
We mixed up Ethereum key pairs and Chainflip-native key pairs as non-SS58 addresses in smart contract interaction were accepted.
A detailed chronological breakdown of this incident can be found in the Historical context section.
We take full responsibility for this mistake. The staking process has since matured significantly and now includes safeguards that make issues such as this highly unlikely to occur again. At the same point in time, we recognize that this specific case still requires resolution.
How and why did it occur?
After the FLIP token launch, the Chainflip team shareddocumentation outlining multiple staking options. One critical instruction advised users to call the fundStateChainAccount function with the following:
... Node ID as the SS58-decoded representation of the node, or in ‘HEX’ format, which can be retrieved from the node operator.
P2P.org provided both the Ethereum and Chainflip-native addresses to stake to its customer. While initial test transactions were conducted correctly, unclear communication from our side led to the wrong address being used.
As a result, the transaction was made to the correct Ethereum contract, but the payload contained an incorrect address. Consequently, the tokens were locked in non-existent validator addresses, rendering them inaccessible to anyone.
Proposal
We propose a one-time recovery option to restore the affected stake for the original token holders, Delphi Ventures and P2P.org Validator. This is our mistake, and we believe it is our responsibility to help resolve it. The recovery process will be implemented at State Chain FLIP Gateway level, ensuring no minting or change in the total supply.
Implementation steps & fee structure
To initiate the recovery process, we propose the following steps and fee structure, acknowledging that this service should not be without cost to the protocol or the community:
Operational cost fee A non-refundable fee of $10,000 USD, payable by the applicant, to support the core team’s operational costs for managing the recovery process.
Community contribution fee A 15% fee on the total FLIP tokens requested for recovery, allocated to the cross chain foundation to cover community governance council costs and to allocate to other development projects. The applicant will pay this amount in advance to the designated foundation address.
Claiming process After both the operational and community contribution fees are paid, the locked tokens will be transferred from the non-existent wallet addresses to the designated account within the State Chain FLIP Gateway.
This fee structure ensures that the process remains sustainable, discouraging misuse and prioritizing genuine recovery cases, thus protecting the community’s resources and preventing delays due to opportunistic requests.
Implementation details
This recovery approach does not involve minting or burning any ERC-20 FLIP tokens, ensuring the total supply remains unchanged.
The process will be managed as an internal reallocation at the State Chain level, restoring access to the tokens without altering overall circulation.
Conclusion
We acknowledge that this mistake was ours, and we are taking action to correct it. This proposal offers a fair resolution for Delphi Ventures and P2P.org Validator, ensuring their rightful access to staked tokens without impacting the total supply.
This recovery will allow the affected parties to fully participate in the network while reinforcing our commitment to early contributors who supported Chainflip from the beginning. By taking this step, we aim to rebuild trust, strengthen community collaboration, and demonstrate the project’s dedication to fairness and resilience.
We encourage the community to support this proposal as a positive step forward for the Chainflip ecosystem.
Historical context & FAQ
Historical context
This historic context will help you to understand the underlying reason of why we are offering this proposal.
21 November, 2023, 500k FLIP were enabledTokenVestingStaking contract for Delphi,
23 November, 2023, official announcement was made,
P2P.org Validator setup the following validator nodes by sharing their corresponding Ethereum address along with the Validator addresses:
25 November, 2023 Initial test transaction was successful on CF1 with100 FLIP,
26 November, 2023, secondary test transaction was successful on CF2 with100 FLIP,
29 November, 2023,
Three consecutive test transactions with 100 FLIP sent to a non-existent validator address, derived from an Ethereum address instead of a Chainflip-native address with SS58.
Five transactions landed with 99.9k FLIP sent to a non-existent validator address, derived from an Ethereum address instead of a Chainflip-native address with SS58.
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<p>Christmas is here! There’s no way we’d have left you without gifts…</p><p><strong>Leap Wallet & P2P Validator have joined forces to bring you a miraculous giveaway.</strong></p><div class="kg-card kg-callout-card kg-callout-card-blue"><div class="kg-callout-text"><b><strong style="white-space: pre-wrap;">We’ve got 1 Mammoth NFT up for grabs,</strong></b> and all you have to do is stake TIA to win.</div></div><p><br></p><h3 id="the-rules">The rules:</h3><ul><li>Delegate your TIA to the P2P.org validator using the Leap app</li><li>Stake a minimum of 200 TIA</li><li>Follow @leap_wallet & @P2PValidator on X and <a href="https://x.com/P2Pvalidator/status/1871594190662156424?ref=p2p.org" rel="noreferrer">retweet the announcement</a></li><li>Reply with your Celestia and 0x Forma Address used for staking and where you want to receive your Mammoth.<br><br>We will announce the winners on 7th January 2025</li></ul><p>With the Leap app, you can easily stake TIA, redelegate from other validators, and swap for more TIA. </p><h3 id="using-leap-to-stake-tia">Using Leap to stake TIA</h3><p>To start, download the Leap app here: <a href="http://leapwallet.io/download?ref=p2p.org"><u>leapwallet.io/download</u></a></p><p>Then, import your existing Celestia wallet or create a new one.</p><p>Now, it’s time to stake your TIA</p><p><strong>Step 1:</strong> In the Leap app, tap ‘Stake’</p><p><strong>Step 2: </strong>Enter the amount & select P2P.org Validator</p><p><strong>Step 3:</strong> Confirm your delegation</p><p>Just like that:</p><figure class="kg-card kg-image-card"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfGwyYFgvdsT-P83dKa8qPDcIGHS8TBOTG-fB33ObDA8O32EuH-QgiK3a9iRUWB-J85BPiAFJ_O80ACDB8XwswTNQNZjIYQtJ6mZhtKYlaqrxlPlHReI0C4DUMy7LUO1yOTwNHZ9g?key=9PNqn-YHOqLtdwAqhgygFkqM" class="kg-image" alt loading="lazy" width="1080" height="1080"></figure><h3 id="using-leap-to-redelegate-tia-from-other-validators">Using Leap to redelegate TIA from other validators</h3><p>If you already have TIA staked, <strong>you can redelegate to P2P Validator & enter the giveaway.</strong> Using Leap, you can redelegate in seconds!</p><p></p><p><strong>Step 1:</strong> From the Validator list, tap the validator you want to redelegate from.</p><p><strong>Step 2</strong>: Tap ‘Switch Validator’</p><p><strong>Step 3</strong>: Enter the<strong> </strong>amount & select P2P.org Validator</p><p><strong>Step 4:</strong> Confirm your delegation</p><p>It is that easy:</p><figure class="kg-card kg-image-card"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcN2XPzgK2o6cYJcf14dhie72hRtFDtgR9cKKrwZXZD7LDTT-lCN1PzaDJ2FxEcof_1HimSZdLf6_b5PTH4NBUN5wObKyRSiaX4jE-rVQu8W6xhXY-77sn8SW4OT4qb1wbpQJMMWQ?key=9PNqn-YHOqLtdwAqhgygFkqM" class="kg-image" alt loading="lazy" width="1080" height="1080"></figure><h3 id="using-leap-to-swap-for-more-tia">Using Leap to swap for more TIA</h3><p>Don’t have enough TIA to enter the giveaway? You can quickly fund your wallet by swapping using Leap!</p><p><strong>Step 1:</strong> Tap the ‘Swap’ button</p><p><strong>Step 2:</strong> Select the token you wish to swap from, then select TIA as the destination token.</p><p><strong>Step 3:</strong> Enter the amount & confirm the transaction.</p><p>Leap supports swapping from 4,000+ tokens on 120+ chains, so you can get TIA easily using any token you have.</p><h3 id="what-next">What next?</h3><p>Stay tuned for more giveaways & campaigns. We’re just getting started!</p><p></p><h2 id="about-leap-wallet">About Leap Wallet</h2><p>Leap Wallet is the leading interchain and modular wallet, offering a smooth experience for 120+ chains. With support for in-wallet swaps, staking, rewards, and airdrops, Leap is the best way to track and manage your portfolio. Real-time charts and price alerts make it easy to keep up with all the market madness. Leap is used and trusted by 500k+ users.</p><p><a href="http://leapwallet.io/download?ref=p2p.org"><u>Website</u></a> | <a href="http://twitter.com/leap_wallet?ref=p2p.org"><u>X</u></a> </p><p></p><h1 id="about-p2p-validator"><strong>About P2P Validator</strong></h1><p><a href="https://p2p.org/?ref=p2p.org">P2P Validator</a> is a world-leading non-custodial staking provider, securing over $7 billion from over 10,000 delegators/nominators across 40+ high-class networks. We have actively participated in the Babylon Chain activities since the beginning. In Cap2, we were the Top 1 Verified Staking Provider in the entire ecosystem.</p><hr><p>Do not hesitate to ask questions in our <a href="https://t.me/P2Pstaking?ref=p2p.org">Telegram</a>. We are always open to communication.</p><hr><p><strong>Web:</strong> <a href="https://p2p.org/?ref=p2p.org">https://p2p.org</a></p><p><strong>Twitter:</strong> <a href="https://twitter.com/p2pvalidator?ref=p2p.org">@p2pvalidator</a></p><p><strong>Telegram:</strong> <a href="https://t.me/P2Pstaking?ref=p2p.org">https://t.me/P2Pstaking</a></p>
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