Gnosis Co-Founder Proposes Plan to Enhance GNO Security

Identifying Risks in the GNO-Ethereum Structure

Gnosis co-founder Martin Koppelmann has highlighted potential risks in the current structure of the GNO-Ethereum protocol. He pointed out vulnerabilities associated with the GNO tokens, which are managed through a bridge contract connecting GNO and Ethereum. This structure, according to Koppelmann, could expose the system to security threats.

The Security Concerns

Koppelmann expressed concerns about the reliance on bridges, which are crucial for token transfers across blockchain networks. Despite their usefulness, bridges are relatively new and have been prone to hacks and bugs, contributing to significant financial losses in the crypto industry. Such vulnerabilities pose a risk to GNO due to its integral role in the consensus mechanism of the Gnosis chain.

Proposed Changes for Enhanced Security

To mitigate these risks, Koppelmann proposed a shift in the "source of truth" for GNO from Ethereum to the Gnosis chain. This change aims to empower the community to enforce DAO votes directly in the code, enhancing the security and independence of the protocol.

Specific Measures Suggested

Among the specific measures suggested, Koppelmann recommended burning 7 million of the 10 million GNO tokens currently on Ethereum. This action is currently impractical due to the limitations of the existing code. Additionally, he proposed increasing the GNO supply on Gnosis to 3 million and revoking the bridge's authority to mint new tokens. Instead, a dedicated GNO-minting contract would be established for handling Ethereum-based withdrawals.

These proposed changes are designed to strengthen GNO's security and reduce its dependency on Ethereum, ensuring a more robust and independent blockchain ecosystem for Gnosis.