Validators representing over 90% of the stake on the Sui blockchain have voted in favor of a recovery plan to address the recent Cetus hack. The on-chain community vote concluded early due to the overwhelming support for the proposal. This decision enables the transfer of frozen funds to a multi-signature wallet to be held in trust until they can be returned to users.
Sui Validators Vote Approves Fund Recovery
The Sui Foundation said that over 90% of validators with voting authority backed the recovery plan, resulting in the vote closing early at just four days. In the voting stage, validators and stakers had a major say in the decisions for protocol governance.
Validators voted “yes,” “no,” or “abstain,” and the weights of their votes depended on how much at stake they represented. The Sui Foundation’s interest was not counted to preserve an even playing field.
The proposal gives clearance for updating the protocol, allowing frozen funds under hacker control to be moved into a multi-signature wallet. Trusted parties such as Cetus, the Sui Foundation and OtterSec will handle managing this wallet. The purpose is to keep protected assets so they can be delivered to affected users in line with the recovery plan.
Cetus Hack Recovery Plan and Protocol Upgrade
Shortly after the vote, Cetus released a precise plan explaining how the company would recover. The process starts when Sui validators upgrade the protocol to take compromised assets and put them into the multisig wallet. Cetus reported that enhancements to the Constant Liquidity Market Maker (CLMM) contract have been made and it is now being audited to confirm its safety and effectiveness.
After applying the protocol update, Cetus will bring back the data for the pools and figure out how much liquidity was lost by each. The fact that the hacker frequently changed the assets means the recovered funds have now changed too. Cetus will undertake asset conversions carefully, working to prevent big losses and prevent the market from being troubled. This way, the pools are ready to be rebalanced in a fair way.
Cetus is working on a contract to provide compensation to liquidity providers in the event of remaining losses. Before using the contract in production, it will be checked by an independent auditor to assure it is trustworthy and clear. The company is also improving its peripheral modules so they will support the new CLMM contract and guarantee proper function of all related services.
The final part of the recovery plan is to restart the protocol, so providers of liquidity can once again use their funds held in the affected pools. If a pool was not involved in the exploit, it will keep running normally. According to Cetus, the recovery and relaunch should be done within around a week.
Stakeholder Engagement and Governance
The Sui Foundation urged both validators and stakers to participate in making changes within the network. The voting process showed that the community was truly dedicated to resolving the security problem together.
The foundation appreciated the stakeholders for getting involved and said that protocol governance depends on such engagement.
Cetus thanked them for voting with quick decisiveness. They stated, “Whether you agree or disagree, your involvement is another step towards dealing with this issue and growing our future together.” The foundation and Cetus will keep offering updates on the progress of the protocol as it returns.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
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