{"id":114900,"date":"2019-10-05T17:30:58","date_gmt":"2019-10-05T17:30:58","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=114900"},"modified":"2026-06-12T09:54:15","modified_gmt":"2026-06-12T08:54:15","slug":"eos-io-phasing-out-free-network-resources-after-smart-contract-exploit","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/eos-io-phasing-out-free-network-resources-after-smart-contract-exploit\/","title":{"rendered":"EOS.IO phasing out free network resources after smart contract exploit"},"content":{"rendered":"

Block.one is planning<\/a> to phase out free network resources on EOSIO after the feature allowed an attacker to exploit a smart contract for 30,000 EOS<\/a>.<\/p>\n

On the heels of v1.8<\/a>, network's first consensus hard fork upgrade, Block.one<\/a> is moving block producers to eliminate free network resources. Currently, during times of low congestion surplus resources are distributed back to token holders. Instead, the company behind EOSIO wants to eliminate the redistribution of surplus resources.<\/p>\n

According to the firm, such a change would introduce greater stability and predictability for the network.<\/p>\n

Smart contract exploit<\/h2>\n

In mid-September the gambling dApp EOSPlay was exploited<\/a> for 30,000 EOS, worth $110,000 at the time, by abusing developers\u2019 expectations of free network resources.<\/p>\n

The exploit was conducted by pushing the network<\/a> into \u201chigh congestion mode,\u201d the end of free network resources, by renting a huge amount of network resources from EOSIO\u2019s recently implemented resource exchange, REX. Many dApps and users on the network weren\u2019t ready to handle the sudden shock to resource availability.<\/p>\n

\u201cSome users have taken it upon themselves to wastefully consume the \u2018free\u2019 bandwidth offered when those who have reserved bandwidth don\u2019t utilize it,\u201d said Block.one, likely alluding to the incident. \u201cThis behavior forces the network to reduce the amount of \u2018free\u2019 bandwidth it offers to all users, and disrupts those that have come to rely on a consistency of free resources.\u201d<\/p><\/blockquote>\n

As a result, many applications on the network were made \u201cunusable\u201d and smaller token holders were inhibited from using dApps and wallets for over two hours. And, during the state of high network congestion the attacker was able to manipulate the transactions included on the blockchain to guarantee wins on EOSPlay, allowing them to drain the smart contract.<\/p>\n

Block.one\u2019s response<\/h2>\n

The incident sparked considerable feedback and criticism toward Block.one. Both Brendan Blumer<\/a> and Dan Larimer<\/a>, the CEO and CTO of the firm, took to social media<\/a> to address the exploit.<\/p>\n

\u201cRecent events have evidenced that the existence of \u2018sometimes free\u2019 bandwidth creates unrealistic expectations in both developers and users who don\u2019t fully understand the specifics of EOSIO design,\u201d stated Block.one in its recent announcement<\/a>.<\/p><\/blockquote>\n

To address these \u201cunrealistic expectations\u201d Block.one is phasing out free resources entirely.<\/p>\n

\u201cRemoving this feature will ensure everyone adapts to securing network resources through renting or staking tokens, and will result in an improved user experience where every user always gets what they expect,\u201d stated Block.one. \u201cWe believe it\u2019s now time to operate the network as if it is experiencing high volumes all the time.\u201d<\/p><\/blockquote>\n

Implementing the change<\/h2>\n

First, Block.one is recommending that block producers take advantage of EOSIO\u2019s \u201cgrey list\u201d feature. The grey list allows block producers to restrict users solely to their allocation of guaranteed resources, removing their access to free resources. The feature allows block producers to cut off users who abuse free resources, said Block.one.<\/p>\n

To phase out free resources from the network, Block.one plans to introduce a new feature that would allow block producers to apply the grey list to all accounts and gradually reduce free resources for all users.<\/p>\n

Although, the company is not ruling out the possibility of a hard fork upgrade to implement the feature.<\/p>\n

\u201cBlock.one believes that a hard fork could be used as another effective measure to make the shade of grey listing a global consensus parameter, rather than a setting individually implemented by each block producer.\u201d<\/p><\/blockquote>\n

Following the exploit, it seems that Block.one is paying heed to feedback from the community.<\/p>\n","protected":false},"excerpt":{"rendered":"

Block.one is planning to phase out free network resources on EOSIO after the feature allowed an attacker to exploit a smart contract for 30,000 EOS. On the heels of v1.8, network’s first consensus hard fork upgrade, Block.one is moving block producers to eliminate free network resources. Currently, during times of low congestion surplus resources are […]<\/p>\n","protected":false},"author":29,"featured_media":54069,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"\nEOS.IO phasing out free network resources after smart contract exploit<\/title>\n<meta name=\"description\" content=\"Block.one is planning to phase out free network resources on EOSIO after the feature allowed an attacker to exploit a smart contract for 30,000 EOS.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/eos-io-phasing-out-free-network-resources-after-smart-contract-exploit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"EOS.IO phasing out free network resources after smart contract exploit\" \/>\n<meta property=\"og:description\" content=\"Block.one is planning to phase out free network resources on EOSIO after the feature allowed an attacker to exploit a smart contract for 30,000 EOS.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/eos-io-phasing-out-free-network-resources-after-smart-contract-exploit\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2019-10-05T17:30:58+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-06-12T08:54:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/05\/eos-sys-social.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Mitchell Moos\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"EOS.IO phasing out free network resources after smart contract exploit\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mitchell Moos\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/eos-io-phasing-out-free-network-resources-after-smart-contract-exploit\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/eos-io-phasing-out-free-network-resources-after-smart-contract-exploit\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/mitchell-moos\/#person\",\"name\":\"Mitchell Moos\",\"url\":\"https:\/\/cryptoslate.com\/author\/mitchell-moos\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/mitchell-moos\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/mitchell-moos\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/11\/author-mitchell-moos.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/11\/author-mitchell-moos.jpg\",\"caption\":\"Mitchell Moos\"},\"jobTitle\":\"Contributing Analyst\",\"description\":\"Mitchell is a software enthusiast and entrepreneur. 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