Across Protocol has proposed a cap on its ACX token supply in response to concerns raised by LayerZero Labs CEO Bryan Pellegrino.
Across Protocol has proposed a cap on its ACX token supply in response to concerns raised by LayerZero Labs CEO Bryan Pellegrino.
Pellegrino highlighted a function in the Across token contract that potentially allowed the contract owner to burn ACX tokens from any wallet, raising alarms about security.
The proposal, introduced by Across co-founder Hart Lambur, aims to limit the total supply of ACX tokens to one billion. If approved by the community, the proposal would also transfer ownership of the ACX token to a null address (0x0), effectively preventing any future changes to the token supply through minting or burning.
Pellegrino criticized the Across token contract, claiming it has a “critical issue.” He contended that the capability to burn tokens could result in arbitrary losses for token holders, calling it a significant transparency concern.
In response, Lambur dismissed Pellegrino’s remarks as “disingenuous FUD and fear-mongering,” asserting that the contract had been audited by OpenZeppelin and was secure.
Jota Carpanelli, head of security at OpenZeppelin, defended the contract's design, stating that its mint and burn functions were controlled by a Safe multi-signature wallet and functioned correctly.
Pellegrino, however, challenged this assessment, suggesting that the design choice was flawed and that many users might be unaware of the risks involved.
As the community engages in a non-binding temperature check vote regarding the proposal, preliminary results indicate strong support, with 99.5% favoring the supply cap.
Meanwhile, the ACX token's value has dropped approximately 4% to $0.28 following the allegations.
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