Chainlink Addresses Rumors Over Multisig Wallet Signer Changes
Chainlink's recent alteration to its multisig wallet configuration raises concerns. The team claims the change is part of their routine signer rotation process.
Chainlink, a decentralized oracle network, recently made alterations to its multi-signature (multisig) wallet, a move that didn't go unnoticed by the crypto community.
Chainlink's multisig wallet, designed as a security measure, originally required a 4-of-9 configuration. This meant that out of nine potential signers, at least four needed to approve a transaction. However, the company discreetly shifted this configuration to a 4-of-8 setup, effectively reducing the number of necessary signatures by one. Crypto researcher Chris Blec was among the first to raise the alarm, pointing out this change on X (previously known as Twitter). He highlighted a message from an anonymous user that revealed a wallet address had been silently removed from Chainlink's multisig setup, all without any official communication from the company.
When and why did you remove 0xCDf00F2194F166851E51ab45D1BeD160FAB02B5A from the @chainlink multisig?
It has now become a 4/8 multisig (it was a 4/9).
Has there been any announcement about this?
Indeed, now I trust you even less.@ChainLinkGod pic.twitter.com/7PRMPXbVOE — ????Y????AN #???????? ???? (**not** brown backpack guy) (@StefanPatatu) September 24, 2023
The crypto community was quick to voice their concerns. The discreet nature of the change, without any formal announcement, raised suspicion. Some even speculated that this could be a strategic move by Chainlink to avoid potential regulatory complications with entities like the Securities and Exchange Commission (SEC).
Chris Blec expressed concerns that alterations to the multisig could potentially allow Chainlink to manipulate its price feed, thereby centralizing what is supposed to be a decentralized system. He further emphasized that the entire decentralized finance (DeFi) ecosystem might be jeopardized if Chainlink's signers acted maliciously. Chainlink's oracles play a pivotal role in the DeFi sector, providing accurate price data to major projects like Aave and MakerDAO. Any risk to Chainlink indirectly poses a threat to these projects.
The entire DeFi industry - VCs, DAOs, devs, everyone - is colluding to hide the fact that if 5 people, chosen by @chainlink, ever decide (or are forced) to go rogue, the entire DeFi ecosystem can be intentionally destroyed in the blink of an eye. — Chris Blec (@ChrisBlec) February 7, 2023
Chainlink was quick to respond. A spokesperson from the company clarified that the change was part of their routine signer rotation process. This process, they explained, is aimed at ensuring the reliable operation of Chainlink services. The spokesperson further added that despite the removal of one signer, the multisig threshold remained unchanged at 4-of-9.
“As part of a periodic signer rotation process, the multisignature Gnosis Safes used to help ensure the reliable operation of Chainlink services were updated. The rotation of signers was completed, with the Safes maintaining their regular threshold configuration.”
Chainlink operates as a decentralized oracle network, facilitating Ethereum-centric smart contracts to interact safely with external data and services beyond the isolated environment of blockchain platforms.
It's worth highlighting that Chainlink's primary token, LINK, priced at $7.41, has showcased impressive performance lately, registering an approximate 20% surge in the past month.