TL;DR
- DEGEN L3 blockchain faces obstacles in migrating to a new provider due to conflicts with Conduit.
- Infrastructure problems caused losses of more than $160,000 for DEGEN users.
- The community is preparing to take drastic decisions if a solution is not found.
After months of difficulties and failed negotiations, the DEGEN team has decided to openly share with its community the challenges it faces in migrating its L3 blockchain to a new infrastructure provider.
This migration, which has been plagued since August by operational obstacles with Conduit, has prevented the deployment of new features and created serious financial and trust issues for the DEGEN community.
According to a detailed post on its platform, a system upgrade by Conduit in May resulted in 54 hours of downtime, disruptions to transaction sequences, and a total loss of over $160,000 for users.
Conduit did not take responsibility or offer compensation, leaving DEGEN in a difficult situation. This information was disclosed in a blog post by founders Jacek and Colton on November 7, 2024.
The origin of the conflict seems to be Conduit‘s refusal to hand over the keys necessary to complete the migration.
This has prevented the protocol, which reached transactions of up to $200,000 daily before the incident, from moving forward in launching new services that would improve the user experience and open up new applications in its ecosystem.
In addition, Conduit has retained the sequencing fees owed to DEGEN and has required the signing of a liability waiver agreement in order to move forward with the migration process.
Operational difficulties and migration challenges of DEGEN
Tensions escalated when, following the May incident, Conduit offered six months of free service and another six at double the cost, rather than compensating customers for their losses.
The situation worsened when DEGEN requested the migration of its block explorer data and Conduit reported that it had deleted the data without backup, forcing DEGEN to rebuild the information from scratch, which deteriorated the user experience.
DEGEN’s founders have attempted to negotiate an amicable exit, offering up to $5,000 a month to cover transition expenses. However, Conduit repeatedly rejected final electronic agreements and delayed the process for weeks.
These facts, combined with the lack of adequate operational testing and transparency issues, have led DEGEN to question Conduit‘s professionalism as a partner.
Given this situation, DEGEN has left open the possibility of creating a new chain and compensating current token holders and developers in the original L3, although they recognize that this measure would not be ideal.
The community , aware of the importance of maintaining security and autonomy over its digital assets, has expressed its support for DEGEN leaders, who seek to ensure that situations like this do not affect the core functionalities of the ecosystem.
The DEGEN team continues to evaluate its options and assures that it will keep the community informed on the progress of this complex transition. In the meantime, Base token tipping and trading activities remain unchanged, with the hope that a favorable resolution will be reached soon.