$260 Million: Proposes EIP 999 to Recover ETH Frozen by Parity’s Contract Bug

In November 2017, Parity Technologies, an Ethereum blockchain development company compromised on a multi-sig wallet by two bugs. The codes had two separate functionalities, the first one was created for “instant delete” and the second was to “provide ownership”. The performance of the code was tested by Devopps99, a newbie in the ETH community.

The aftermath of the testing phase was that the bug froze all wallets that were operating under the Parity Library Contract. This resulted in the blocking of 580 wallets HODLing 513,000 ETH. The Ethereum Improvement Proposal [EIP] 999 intends to solve the issue by patching a contract source code which shall authorize individuals’ affected wallets and can get their money back. There is a poll being held to decide if the EIP 999 should be activated or not?

Approximately $150 million worth ETH was stored in the wallet earlier, which is now increased to $260 million. Ethereum community has struck down the efforts of recovering frozen funds before, hence this time it is reliant on the polls which will end on 24th April.

Stan Marshall, a Reddit user worded in a response to the EIP 999 says:

“If they were truly active developers who have a personal stake in the system, then I’m sure they wouldn’t want Ethereum to undergo the repercussions of another fork.”

Randy, a potential Ethereum user suggests on Reddit saying:

This EIP is beneficial to everyone who had funds locked in the multisig lib bug and everyone who might benefit from the products and services built by the first group and who doesn’t want to punish a human error with irrevocable loss of funds.”

A cryptocurrency enthusiast commented on Reddit:

“If I lose all my savings that are in cash under my bed – because I made a silly mistake or because someone stole it from me – should the state or the people in my road, or anyone, provide a way for me to recover those funds? If so, it might mean that I could be as careless as I liked because I would always get my money back. So would everyone else. Careful people would in effect be subsidizing the careless. The value of the currency would fall. You can see the problem here. It’s called moral hazard. If there are no painful consequences for my mistakes, then I (and everyone else) will continue to make mistakes. Confidence in the system is undermined.”

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