Gnosis hard fork returns Balancer's hacked funds, sparking controversy

According to The Defiant, Gnosis Chain announced a hard fork on December 22 to return the $9.4 million frozen in the Balancer hack incident. Balancer suffered a loss of $128 million last month, and Gnosis had previously frozen part of the funds through a soft fork, but now a hard fork is needed to unlock and return the funds to users.

This decision has sparked heated debate in the community. Supporters believe it demonstrates accountability, while opponents question whether it violates "code is law" and undermines blockchain immutability. Infrastructure lead Schommers emphasized the need for validator consensus and that it does not affect on-chain history.

DeFi operator Ignas pointed out that the soft fork has already harmed immutability. The GNO token fell 3% to $115, highlighting the dilemma in DeFi between security and decentralization principles.