Bram Cohen’s next-generation open-source blockchain and smart transaction platform, Chia Network, replaces its CAT1 (chia asset tokens) to address security vulnerabilities with the token’s standard.
According to the blog post, auditor Trail of Bits found vulnerabilities in the token which led the Chia team to find the security flaw in the CAT1 asset token standard.
Chia confirmed that this issue has not been exploited, and the team is continuing to monitor the chain. But they determined that the security vulnerability is severe enough to warrant moving from CAT1 to CAT2.
This upgrade is supposed to fix the vulnerability, deactivate CAT1, and allow for the issuance of CAT1 coins as CAT2.
CAT1 will be officially EOL and replaced by CAT2 on Tuesday, July 26 around 10 am PDT after a block height of 2,311,760. Version 1.5.0 will be available for download, including the upgraded wallet to support CAT2.
For CAT issuers to reissue their CATs to holders, the EOL milestone will be used as a guide.
Stably USD will reissue the same 1000 USDS value to the holder as a CAT2 asset, for instance, if the holder had 1000 USDS in their wallet at the EOL block height.
A CAT2 token of the same type and value will be used in place of each CAT1 coin that a user had at the time of the EOL block.
If the same user-traded some of their 1000 CAT1 USDS for another asset after the EOL milestone, they would still only receive the 1000 USDS in CAT2 value.
The CAT standard has been updated to fix a bug that only impacts CAT1 tokens. The XCH, NFTs, and blockchain are unaffected in the process.
The network advises downloading version 1.5.0 for anyone holding CATs including USDS, as the wallet will no longer show CAT1 balances due to the upgrade.
Chia is urging the users to upgrade to version 1.5.0 before making or accepting Chia Offers of XCH for CAT1 or trading NFTs for CATs, as any CAT1 transactions made or accepted after EOL will not be valid for reissuance.
After the block height EOL, if the user makes or accepts a trade offer for CAT1 tokens, their XCH funds will be lost and the CAT1 assets they receive won’t be upgraded to CAT2.
“End users should be made ‘whole’ on the CAT1 holdings,” Chia Network noted in a statement that will be available on the Chia blog.
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