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April 07, 2023

Funds from GemholicECO’s 921ETH Token Sale Stuck in zkSync’s Smart Contract Due to Using Transfer Function

In Brief

GemholicECO used the transfer function when deploying their token contract on zkSync Era.

The transfer function works on Ethereum and other EVM chains, but not on zkSync.

zkSync has given the community an update to clarify the issue.

Funds from GemholicECO’s 921ETH Token Sale Stuck in zkSync’s Smart Contract Due to Using Transfer Function

GemholicECO, a multi-product platform, has raised 921 ETH, worth approximately $1.7 million, in a token sale. However, the funds have been stuck in the smart contract due to an issue with the usage of the .transfer() function, which works on Ethereum and other EVM chains, but not on zkSync.

zkSync Era is a Layer-2 protocol that scales Ethereum with Zero Knowledge technology. The Alpha version of the protocol opened on the mainnet on Mar 24.

To clarify the issue, zkSync tweeted an update on Thursday, giving its community context. According to zkSync, GemholicECO deployed its contract on the mainnet without trying it on the testnet or local node, which would have caught the problem. 

“Any smart contract that uses transfer() or send() is taking a hard dependency on gas costs, because this functions forward a hardcoded amount of 2300 gas,” zkSync explained. While the function uses a hardcoded gas amount, gas costs can change, causing the smart contract to break.

Developers were warned about using the transfer function three years ago, but it seems that GemholicECO did not heed the advice. Anticipating that the problem would arise, zkSync added a warning about using the transfer function directly into the compiler.

Developers of the protocol made a deliberate design choice of making zkSync not EVM equivalent. zkSync claims that Its dynamic gas metering allows some transactions to be up to 1,000 times cheaper than on any other EVM rollup.

Furthermore, zkSync previously checked the source code of dozens of popular crypto projects and didn’t find a single one to be not following the three-year-old warning of not using .transfer(), therefore leading it to conclude that the developer community had resolved this issue.

To prevent this issue from resurfacing in the future, zkSync has identified a solution that can solve a broader class of gas-related problems, unfreeze the smart contract and fully recover GemholicECO’s funds. The protocol will publish more details soon.

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About The Author

Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via [email protected] with press pitches, announcements and interview opportunities.

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Cindy Tan
Cindy Tan

Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via [email protected] with press pitches, announcements and interview opportunities.

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