MegaETH responds to community concerns about the pre-deposit activity: user funds are safe, and withdrawals will be enabled.

Original Title: MegaETH Responds to Community Concerns about Pre-deposit Activities: User Funds are Safe, Withdrawals will be Opened

Original author: MegaETH

Original source:

Reprint: Mars Finance

Editor’s note: Yesterday, MegaETH launched a pre-deposit event, but during this period, there were some discontent from the community due to a temporary change in the hard cap and difficulties in user deposits. Subsequently, the MegaETH official responded on social media, apologizing and stating that withdrawals will soon be opened, emphasizing the safety of user funds.

The following is the original text from MegaETH regarding the review of the event and response to the community:

The situation that occurred previously is unacceptable to us. A series of subtle technical issues have led to the user experience not meeting the expected standards.

We understand that some users may wish to withdraw their funds, especially those participants who deployed funds based on the expectation of a $250 million limit. To this end, we will be launching a withdrawal page shortly and will also provide detailed information about the pre-deposit bridging activity. User funds have never faced any risk, and we sincerely thank everyone for their support.

Event Recap

In light of the scale of participation, we believe it is necessary and transparent to restore the events that occurred, in order to jointly plan the next steps. Although the assets are always safe, this is not an excuse - we hold ourselves to a higher standard.

The complete overview of the following retrospective events:

Preparation phase

It is necessary to first explain all the steps involved in the activity:

1. Pre-deposit website

→ Operated by MegaETH

→ Send KYC validity verification request to Sonar API

2. Pre-deposit Contract

→ Operated by MegaETH through Safe multi-signature wallet (4/6)

→ Responsible for setting the sales time, limit parameters, and the Sonar sales unique identifier (SaleUUID)

→ Only accept valid signed deposits from the website, eliminating bot operations.

3. Sonar System

→ Operated by Echo

→ Responsible for verifying the KYC information of specific sales

Problem tracing

The following are the issues that occurred during the event operation:

SaleUUID mismatch exception

· The transaction initiation failed due to a mismatch between the SaleUUID stored in the prepaid contract and the system.

· Correcting erroneous values requires executing a multi-signature transaction (coordinating 4 out of 6 signers), which takes a lot of coordination time.

Sonar Rate Limiting Mechanism and System Downtime

· Sonar started intercepting access requests due to incorrectly configured traffic limits (threshold set too low)

· User unable to complete fund deposit

· It took 23 minutes to identify the root cause and deploy the fix after discovering the problem.

Random Restart Mechanism

· After all server issues are resolved, the system will randomly restart according to the preset automation mechanism (this design aims to ensure fairness).

· However, after the system reboot, the fundraising limit was instantly reached.

sudden influx of funds

· The $250 million quota was instantly filled by users of the pre-deposit website that was continuously refreshed.

· The team has decided to increase the limit to 1 billion USD at the next full hour (approximately 40 minutes later), and will need to execute a 4/6 multisig transaction to adjust the parameters again.

· The team has completed the signature collection and is ready to submit at the scheduled time.

· However, the operators executing the increased amount transactions are not familiar with the functions of the Safe wallet.

$500 million cap and pause decision

· At this time, more users who frequently refresh the website found that they could resubmit deposits, while users who followed official channels were unable to perceive the adjustment of the limits in a timely manner.

· The team initially attempted to set a new limit of $400 million to balance the advantages of early depositors, but the deposits exceeded expectations at the time of transaction confirmation.

· Successfully set a limit of 500 million USD (currently this limit has been reached)

In light of the rapid changes in the hour leading up to the final adjustment, we have decided to suspend the planned expansion of the $1 billion quota. Due to unresolved issues in the KYC verification process that hinder user participation, we will no longer continue to raise the fundraising limit.