UPDATE (11th of March 2025):

After publishing this issue, there have been a couple of underwhelming attempts by official members of the Dusk project to downplay the situation. This behavior is, unfortunately, consistent with the general attitude exhibited by Dusk officials toward the community. This update aims to clear the air and call for greater transparency.

First of all, let’s clarify that, despite an early attempt to dissuade community members in the initial response to this matter, the fact that the Native Chain genesis file shows a minted supply of 500M tokens is completely irrelevant to the matter at hand. The issue concerns the CIRCULATING supply being higher than the expected supply as defined by the Economic Protocol and the general project tokenomics. The circulating supply is calculated as the sum of all tokens across all chains, minus tokens that have been properly burnt and tokens that have been properly locked. To further clarify: the circulating supply numbers presented here INTENTIONALLY exclude the tokens minted by the Native Chain block provisioners as they are irrelevant to showcase the current issue. If any of these concepts are not clear to any Dusk members, then their participation in the project should be questioned.

The vast majority of the CIRCULATING OVERSUPPLY has been caused by 50M tokens minted on BSC about one year ago that appear unaccounted for. Let’s follow where these 50,000,000 DUSK tokens went, in an effort to discourage generic responses from Dusk members and instead shed light on the matter:

• 50M tokens were 🔗 minted on the Binance Chain on the 24th of March 2024.
• Approximately 1.26M tokens were distributed from Dusk to several recipient addresses during May 2024.
• This was followed by a 🔗 transfer of 48.74M tokens from Dusk Deployer to a new 🔗 address.
• The 48.74M tokens were quickly 🔗 swept by Binance into one of their 🔗 wallets. This wallet, known as Binance Wallet 6, is active and has thousands of transactions to and from a diverse range of addresses after the deposit. At this point, these tokens are considered commingled, making it virtually impossible to trace them further.
• It is acknowledged that 🔗 Binance Hot Wallet 20 currently holds approximately 56M tokens, and some of these tokens originated from Binance Hot Wallet 6. However, these two addresses have been transferring funds between each other at regular intervals, making it impossible to determine how much of this oversupply is actually held in this address.

Final Questions:

• What are these 50,000,000 DUSK tokens minted on BSC? Are they part of the BEP-2 to BEP-20 migration? If so, why is Binance keeping these additional tokens in a private wallet instead of burning them as intended? Or have the tokens been lent to Binance under a private agreement? And if so, why minting new tokens rather than borrow from the Dusk Deployer reserves? Is Binance using any of this oversupply to fund its private order book? Is anyone benefiting from this oversupply at the expense of others? Finally, when will these 50,000,000 DUSK tokens be properly burnt?
• When will the remaining 10,100 DUSK tokens from the Native Chain mint be properly burnt?

This update isn't about casting blame; it highlights how a lack of transparency and community disparaging forces speculation over important matters. After all, even in Dusk, a little light goes a long way.