Multichain, a cross-chain protocol for Web3, has offered to pay users impacted by “force majeure” that has rendered some cross-chain routes inoperable.
Although the time to restore service is unknown, Multichain highlighted on Twitter that most of the cross-chain routes of its protocol are operational, and only a few were affected by the force majeure.
Additionally, Multichain stated that pending transactions will be automatically credited when service is restored. Accordingly, the team stated that it would reveal the compensation plan’s specifics at a later date.
Multichain Acknowledges ‘Force Majeure’
Multichain first addressed the issue on Wednesday in an operational update, when it stated that an upgrade to a back-end node was taking longer than intended.
Typically, force majeure refers to unforeseen occurrences or situations beyond the control of the contracting parties, rendering it impossible or impractical for them to perform their contractual duties.
Notably, some users have been reporting stalled transactions since May 21, according to The Block. Over the past day, Multichain’s MULTI token has fallen 23.6% to $5.41, according to data from CoinGecko.
Response to the Issue
Large crypto companies have reacted to delays and concerns surrounding the cross-chain protocol Multichain.
As noted by on-chain analyst Lookonchain, the Fantom Foundation has withdrawn $2.4 million in liquidity from the protocol’s native MULTI token on the decentralized exchange SushiSwap and released the token for sale.
Similarly, Chinese crypto investment firm Hashkey Group has transferred $250,000 to crypto exchange Gate.io, according to cryptocurrency analyst Arkham Intelligence.
Mutichain’s Commitment to the Industry
By offering reimbursement to affected customers in such situations, Multichain demonstrates its willingness to take responsibility and mitigate the potential losses incurred by its customers.
This commitment can enhance customers’ trust and confidence in Multichain’s services, as it shows that they prioritize their customers’ interests even in challenging circumstances.
Meanwhile, Multichain has continually received support from industry giants. For example, Binance Smart Chain (BSC) contributes to the protocol as well and has attempted to position Multichain as a long-term preferred bridge for developers.