Hey Edge readers,

Last month, Solana validators quietly rolled out an emergency upgrade to patch a critical bug that could have let attackers mint unlimited tokens and drain wallets. While the fix prevented disaster, the stealth and speed of this update have put Solana’s decentralization model under the microscope.

In this week, we’ll walk you through what happened, why it matters, and how Solana stacks up against Ethereum when it comes to staying truly decentralized.

Stay sharp. 🫡

-The Exponential team

Forks in crypto, explained

Before we dive in, let’s level-set. A fork in crypto happens when a blockchain’s rules change. It’s like a software update, but on a global, decentralized network. There are three key types:

• A soft fork tightens existing rules and remains compatible with older nodes.

• A hard fork makes bigger changes, any node that doesn’t update gets left behind on a separate chain.

• An emergency fork is a rapid, unplanned hard fork meant to fix something critical, like a bug or exploit. It’s often coordinated behind closed doors and can rewrite blockchain history.

That last one? It’s exactly what happened on Solana.

What happened on April 17

Solana validators were privately alerted to a critical bug, one that, if left unfixed, could have let bad actors mint tokens out of thin air or steal assets from wallets. A handful of engineers and Foundation members quickly coordinated a patch, which they shared via DMs on Discord, Telegram, and Twitter.

The instructions included open-source files, verification steps, and SHA checksums. Validators weren’t forced to run anything closed off, but they were asked to act fast, and confidentially. Within hours, over 70% of the network’s stake had applied the patch. Only then, nearly two weeks later, did the Solana Foundation publicly disclose what had happened.

Why the patch raised concerns

Solana’s architecture made this type of coordination possible, but also exposed its centralization risk.

First, the network relies on just one main production client. That means any bug in this codebase is a bug in the protocol. Other blockchains, like Ethereum, spread their risk across multiple clients. If one fails, the others keep running.

Second, the validator network is tightly connected. Many nodes run in centralized data centers, and the core contributors are in close contact with each other. In an emergency, that’s useful. But it also means major decisions can be made in private, without broader community input.

Finally, Solana’s token distribution adds fuel to the debate. When the network launched in 2020, 98.5% of SOL went to insiders, founders, early investors, and the team. That centralization of token ownership still influences governance today.

Ethereum’s slower, but more resilient model

For comparison, Ethereum’s architecture is built around redundancy and transparency. It has multiple clients (like Geth, Nethermind, and Besu), and no single group can control a majority of the network. Even in a crisis, changes require public coordination and open review.

It’s slower by design, but also more robust. For example, when the U.S. sanctioned Tornado Cash in 2022, Ethereum didn’t shut it down or rewrite the chain. The protocol stayed live. That’s the kind of censorship resistance decentralization is supposed to provide.

Solana, by contrast, was able to coordinate and deploy a history-rewriting patch in less than 24 hours. That’s impressive, but it also suggests that a small group holds the keys to the entire system.

What users should keep in mind

This doesn’t mean you need to exit Solana entirely. It remains one of the fastest, most scalable networks in crypto, and it's home to a thriving DeFi and NFT ecosystem. But it’s important to be clear-eyed about the risks, and make sure your strategy accounts for them.

Here’s what to consider:

• Limit exposure: Keep Solana as a smaller part of your portfolio, especially for long-term holdings.

• Diversify chains: For critical assets, Ethereum and other multi-client networks offer stronger guarantees.

• Follow upgrade news: Stay plugged in to Solana Foundation posts and validator dashboards to catch upgrades early.

• Be selective with bridges: If you’re moving funds across chains, choose bridges with time delays and multi-sig controls to reduce the chance of being caught in a chain-level rollback.

In the news 🗞️

• Ethereum’s Pectra Upgrade Goes Live: Ethereum’s latest upgrade, Pectra, enhances user experience by enabling token-based gas payments, batching transactions, and improving validator efficiency. It also doubles data blob capacity to reduce layer 2 congestion, though concerns about Ether’s price performance remain ahead of the upcoming Fusaka upgrade.

• Trillion-Dollar Fintech Stripe Enters Stablecoin Market: Stripe has launched Stablecoin Financial Accounts, enabling users in over 100 countries to store and send USDC or USDB via crypto or fiat rails. While U.S. and Western Europe are excluded, the move targets underserved regions and could reshape stablecoin infrastructure for emerging markets.

• Ethena Expands USDe to Hyperliquid Ecosystem: Ethena’s synthetic dollar, USDe, is now integrated with Hyperliquid’s HyperCore, HyperEVM, and Unit, enabling trading, borrowing, and farming opportunities. Despite the expansion, ENA is down 20% this week, while Hyperliquid’s ecosystem sees record growth in TVL and token performance.

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