Ren Warns Of Potential Losses As Upgrade Looms On The Horizon

Table of Contents

• Potential Losses As Version 1.0 Shuts Down 
• Compatibility Issues 
• Users Are Confused And Angry 

Alameda Research-backed Ren Protocol has warned users of a potential risk of losses as it winds down its current Ren Version 1.0. 

The Ren team stated that once version 1.0 is retired, users may not be able to recover their assets. 

Potential Losses As Version 1.0 Shuts Down 

Alameda Research-backed Ren Protocol, which issues the wrapped bitcoin asset RenBTC, warned users that they risk losing their assets once it shuts down its existing Ren 1.0 version. The project team encouraged users to redeem their tokens before the current version shuts down and the tokens lose all their value. The primary reason behind the shuttering of version 1.0 is the lack of funding after the collapse of Alameda Research. 

The developers added that users could unwrap their tokens and bridge them back to their native chains. The Ren team plans to disable mints on Ren shortly, meaning it would be impossible to deposit assets on the platform to bridge to other networks. Additionally, burns will also be disabled within 30 days.

Compatibility Issues 

Once Ren’s version 1.0 is shut down, it will be replaced by Ren 2.0, a new, community-run version. However, the Ren team warned that the two projects might not be compatible. 

“As announced previously, the Ren 1.0 network is shutting down due to the events surrounding Alameda. As compatibility between Ren 1.0 and 2.0 cannot be guaranteed, holders of Ren assets should bridge back to native chains ASAP, or risk losing them!”

Ren announced on the 18th of November that it was releasing a new protocol version. The announcement stated that the new protocol would be launched in parallel with the shutdown of the current version. This implied to users that current bridged assets may still be usable. However, the announcement has made it clear that current assets would not be usable on the new version of the platform and may be lost forever. 

RenVM, the company behind the protocol, was acquired by Alameda Research in 2021. However, the collapse of Alameda necessitated the speeding up of the move to the new version of Ren. 

“Marking this event as the end of Alameda’s involvement in the project by sunsetting Ren 1.0 safeguards the reputation, integrity, and hence long-term prospects of the Ren ecosystem.

According to available data, there are currently 1130 renBTC currently on Ethereum.

Users Are Confused And Angry 

The announcement from the Ren team has created considerable confusion and anger in the community as users woke up to the possibility of losing their assets in their entirety. Users also wondered if the Ren token itself was in any type of danger following recent events. One frustrated user vented, 

“If we hold tokens on a CEX, do we need to do something?”

Other users were confused, asking for clarification about their REN tokens and if the current update would impact those as well. Several users asked the Ren team to issue a clarification, adding that the announcement had led to panic selling. So far, the Ren team has not responded to these tweets. However, it did issue instructions on how users could check if they have bridged assets that need withdrawing.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.