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first_img Backbone Labs bOSMO contract vulnerability leads to support exhaustion, Osmosis announces compensation plan

The liquid staking token bOSMO issued by Backbone Labs nearly exhausted its contract support after a large redemption in the Osmosis community pool. A disclosure on the Osmosis forum on October 15 revealed that approximately 40,508 OSMO were designated for compensation to 1,037 accounts. The disclosure author Johnny Wyles stated that the staking contract has overpaid for each redemption since at least April 2026, settling at approximately 1.676 OSMO per bOSMO, while the declared exchange rate of the contract was about 1.117 OSMO.The vulnerability repeatedly counted the OSMO staked on Backbone's own validators, allowing redeemers to receive about 50% more assets, at the cost of diluting the support for remaining holders. The defect was exposed when preparing to liquidate the community pool position, and the passed governance proposal 1049 authorized the withdrawal of the Margined managed treasury position and the destruction of the reclaimed OSMO when it ceased managing liquidity operations. The pool's bOSMO treasury holds approximately 1.137 million bOSMO, accounting for about 97% of the total supply of the token; the redemption transaction executed on October 9 at 21:59 ET destroyed 776,000 bOSMO and began unbinding approximately 1.3 million OSMO.Compensation is based on the qualified balance at block 72,237,940, calculated at 1.1174 OSMO per bOSMO. bOSMO purchased after the snapshot is not included in the compensation, and underlying holders in the liquidity pool and other contracts are also included;

Data: Strategy's actions sharply decreased, only capturing 520 units, demonstrating restraint, while Strive increased its holdings against the trend, fully taking over as the backbone

According to SoSoValue data, as of 8 AM Eastern Time on June 22, 2026, the total net purchase of Bitcoin by global listed companies (excluding mining companies) for the week was $86.03 million, a decrease of 13.97% compared to last week.Strategy (formerly MicroStrategy) spent approximately $34.9 million last week to purchase 520 Bitcoins at a price of $67,068, increasing its total holdings to 847,363 Bitcoins.The Japanese listed company Metaplanet did not purchase any Bitcoin last week, marking nine consecutive weeks without purchases.Additionally, four other companies purchased Bitcoin last week. The Japanese food brand DayDayCook announced on June 17 that it spent $7.43 million to purchase 95 Bitcoins at an undisclosed price, bringing its total holdings to 2,899 Bitcoins; the Brazilian Bitcoin company OrangeBTC announced on June 21 that it invested $1.15 million to purchase 18 Bitcoins at a price of $64,121, increasing its total holdings to 3,822 Bitcoins; the asset management company Strive announced from June 15 to June 21 that it spent $49.98 million to purchase 759 Bitcoins at a price of $65,850, raising its total holdings to 19,864 Bitcoins.As of the time of writing, the total amount of Bitcoin held by the global listed companies (excluding mining companies) in the statistics is 1,142,276 Bitcoins, an increase of 1.87% compared to last week, with a current market value of approximately $7.417 billion, accounting for 5.7% of the circulating market value of Bitcoin.

Analysis: Currently, only 65.5% of WLFI presale tokens have been transferred to the Lockbox contract for activation, and its TGE circulation may be significantly lower than expected

ChainCatcher news, according to on-chain analyst @ai_9684xtpa monitoring, currently out of the total supply of 100 billion WLFI tokens, only 20% is clearly unlocked at TGE from the public sale rounds one and two, with a total of 25 billion tokens sold in the public sale.Assuming all participants have transferred their tokens to Lockbox and activated them, the TGE circulation will be 5 billion tokens (5% of the total supply), which, based on the current Binance contract price of $0.3858, would result in a sell-off of $1.93 billion.However, Tokenomist found that the corresponding share of early presale users in the WLFI smart contract is only 1.843 million tokens (with 6.57 billion tokens not accounted for). If this is true, the TGE circulation under the same conditions will decrease to 3.68 billion tokens, resulting in approximately $1.42 billion in sell-off.As of 8 PM tonight, the WLFI Lockbox contract has received a total of 16.395 billion tokens, meaning only 65.5% of the presale tokens have been activated. Therefore, the actual TGE circulation will ultimately depend on the total number of tokens deposited by investors.Based on the current Binance contract price of $0.3858, the FDV of WLFI is $38.58 billion, which is 1.62 times that of LINK's FDV. DWF Labs previously invested $25 million to acquire 250 million tokens at a cost of $0.1, and is also a market maker at USD1, thus DWF Labs will become the market maker for WLFI tokens.
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