Crypto Exchanges

Story: Zcash Ironwood Upgrade Moves $1.7 Billion Out of Bugged Orchard Pool

By Sakamoto Nashi

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The Bug That Started All of This. Here's the uncomfortable part. Developers found a bug in Orchard's proof circuit back in May.

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How the Turnstile Stops Counterfeit ZEC. The key piece of the migration is something called the turnstile accounting rule.

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ZEC Price and Binance's Outsized Role. Markets weren't exactly celebrating. ZEC was trading near $463 ahead of the upgrade but dropped 8%…

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Zcash flipped a switch Tuesday. At block 3,428,143, the network activated Ironwood — also called NU6.

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The old pool, Orchard, held roughly 3.66 million ZEC at activation. At prices near $463 per coin, that's about $1.

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The bug had been sitting there since Orchard launched in May 2022. Three years, basically. Zcash says there's no evidence anyone actually used it, and that's reassuring, kind of.

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So Ironwood is the answer. Start fresh. New pool, zero balance, and a mechanism designed so that whatever happened before can't follow the coins through.

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The key piece of the migration is something called the turnstile accounting rule. It's pretty simple in principle: you can only withdraw from the new pool what you can prove you…

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That's the theory. And it's a solid one. As of now, 1,500 ZEC have already moved into the new pool. Not a massive number against 3.66 million, but migration just started.

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Read also: F2Pools Chun Wang Moves 3,345 ETH Back to Binance After $221M DeFi Stint

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Beyond fixing the bug, Ironwood brings two protections that Orchard never had. First, quantum resistance — per ZIP 2005, the new pool's cryptography is built to hold up even if…

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Binance is the elephant in the room here. The exchange held about 55% of user funds and accounted for roughly 24% of spot trading volume, even as broader market outflows were…

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The migration is voluntary. There's no deadline forcing anyone's hand. That's both a feature and a problem — user-driven transitions tend to drag, especially when the old pool…

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See also: Fed Rate Call and FTXs 900 Million Dollar Payout Put Crypto on Edge

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And the tracker matters. Right now it shows 1,500 ZEC moved. The remaining 3.66 million is still sitting in a pool that can't be expanded but also can't be declared safe.

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