ESC and EID have resumed operation, and cross-chain transfers between both sidechains and the Elastos main chain are open again.
The restart follows a full review of the sidechain stack after the July incidents. The audit covered ESC, EID, the Arbiter, the oracles, and the software that reads and acts on main-chain data.
More than 200 corrections were made before the networks resumed. The coordinated Council node switch completed without interruption, and transfers are now being monitored continuously.
PG Chain continues to operate for activity within its own chain, but cross-chain transfers involving ELA remain disabled. It is recommended that PG Chain transition away from Elastos DAO validators.
Why ESC and EID were paused
Elastos experienced two separate incidents in July.
On July 13, a cross-chain flaw created ELA on ESC without the matching reserve on the main chain. That incident and the first recovery release were covered in Elastos Smart Chain Resumes.
On July 20, a separate value-overflow flaw affected the Elastos main chain. More information is available in the July 20 Security Update and the later Main Chain Postmortem.
ESC and EID were not compromised by the July 20 incident. They were paused as a precaution while the main chain was recovered and the full sidechain stack was reviewed.
The pause remained in place until the required corrections, testing, and coordinated node changes were complete.
What the audit covered
The review examined the full system behind the sidechains and cross-chain transfers, including:
- ESC and EID
- The Arbiter that coordinates cross-chain transfers
- The sidechain oracles
- Software that reads and interprets main-chain activity
- Fund handling and transfer validation
- Chain recovery and restart behaviour
- Node safety and operating controls
The audit produced more than 200 corrections.
Some addressed issues that could stop a chain or affect the handling of funds. Others fixed older correctness and operating problems that were unrelated to either July incident.
The changes required for ESC and EID to resume are now active. The updates that required Council nodes to switch together were applied successfully, with every node completing the change without interruption.
The source for the updated sidechain software is not being published at this time.
ESC and EID are running again
ESC and EID are now producing blocks, and users can transfer ELA between either sidechain and the Elastos main chain.
Cross-chain deposits are checked against the corresponding main-chain record before they are credited. Transfers that do not complete within the expected time raise an alert for review.
The networks and transfer activity remain under continuous monitoring.
Ordinary ELA holders do not need to take any action.
Notice for exchanges, custodians, and wallet providers
Platforms that suspended ELA deposits or withdrawals on ESC or EID should contact the Elastos DAO before reopening them.
This gives both sides a chance to confirm the current network state and review anything specific to the platform’s node, wallet, custody, or indexing setup.
ELA on PGP transfers remain disabled
Users of PG or PGP should not attempt cross-chain ELA transfers. Any such transfer submitted now will not complete.
The PG chain continues to operate normally for activity that stays within PG. Only cross-chain transfers between PG and the Elastos main chain remain disabled.
PG is developed by a separate team that is not part of the Elastos DAO or Elacity Labs. Its cross-chain service will remain closed until that team completes a security review and audit and provides the results to the Elastos DAO. It is also recommended that PG Chain transition away from Elastos DAO validators.
The timing belongs to the PG team. A separate notice will be published when its cross-chain status changes.
Restoring full reserve backing
The July 13 incident created approximately 6.03 million ELA on ESC without the matching reserve on the main chain.
All of that amount has now been accounted for:
| Step | ELA | Status |
|---|---|---|
| Burned on ESC at block 37,634,427 | 4,931,233.97 | Complete and verifiable on-chain |
| Burned from ShadowTokens bridge contracts | 1,100,000.00 | Complete and verifiable on-chain |
| Residual backing recovered | 3,000.03 | Complete |
| Total created on July 13 | 6,034,234.00 | Fully accounted for |
In total, 6,031,233.97 ELA has been burned, while the remaining 3,000.03 ELA backing has been recovered.
Separately, 1,585,252.004 ELA connected to the July 13 incident remains frozen on the main chain. Over the coming weeks, that amount will be credited directly to the ESC reserve.
Once the main-chain credit is complete, ELA circulating on ESC will again be backed one for one by ELA held on the main chain. The credit will be published with its on-chain record so the amount can be checked independently.
Frozen accounts and ongoing matters
The accounts frozen after the July 13 incident will remain frozen permanently. They will not be released.
The matter has been referred to law enforcement and remains under investigation. Some information cannot be published while that work continues.
Reconciliation with the exchange holding proceeds from the separate July 20 main-chain incident is still in progress. That process was covered in the main-chain postmortem and will receive another update when it concludes.
Current status
ESC and EID have resumed operation.
Cross-chain transfers between the main chain and both ESC and EID are open.
PG continues to operate, but cross-chain transfers involving ELA on PGP remain disabled pending a separate audit by its development team.
No user balance was reduced during the pause or restart, and ordinary holders do not need to take any action.
The 1.1 million ELA held in the ShadowTokens bridge contracts has been burned, and the remaining 3,000.03 ELA backing has been recovered. The final reserve step is the approximately 1.58 million ELA credit from the frozen main-chain funds to the ESC reserve.
Elastos DAO / Elacity Labs
