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Indexed DAO Governance Unites to Thwart Hacking Attempts

Indexed DAO Governance Unites to Counter Two Hacking Attempts

Indexed DAO, a decentralized autonomous organization (DAO) based on Ethereum, recently successfully thwarted two new attempts to hijack its remaining treasury. As a reminder, the platform had already experienced a major hack, resulting in the loss of $16 million in 2021.

In the latest hacking attempts, attackers, after acquiring a significant amount of the platform’s NDX token, tried to seize the digital assets controlled by the DAO, estimated at around $120,000.

Specifically, the attackers’ plan was to use the NDX governance tokens to vote in favor of a malicious proposal. They thought they could fly under the radar, but the community quickly responded.

To counter these attacks, the Indexed team had to mobilize the community to vote against these malicious proposals.

Preventive Measures by Indexed DAO

Fearing a similar attack, an emergency plan called a ‘poison pill’ was adopted, allowing the DAO to burn treasury funds to dissuade potential attackers.

When a second hacking attempt occurred, negotiations led to an agreement with the attacker, who accepted $10,000 in DAI stablecoins in exchange for abandoning their malicious proposal.

The attacker eventually accepted the proposal.

The control of the DAO will now be entrusted to a multisig controlled by the founders, who plan to redistribute the remaining funds to the victims of the 2021 hack.

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