Dragonfly partner Haseeb: Even if the Zcash vulnerability is exploited, the losses will primarily be borne by the privacy pool holders.

According to Mars Finance, Haseeb, a partner at Dragonfly, clarified a recently patched vulnerability in Zcash on Twitter. He stated that if the vulnerability had been exploited before the patch (although the probability was extremely low), it would have resulted in the creation of fake ZEC in the privacy pool. Attackers would need to sell quickly, but since the market primarily trades transparent ZEC, it's impossible to directly sell undecrypted privacy ZEC on mainstream exchanges. Therefore, the losses would primarily be borne by users holding privacy ZEC, with almost no impact on transparent ZEC holders or price discovery. Haseeb emphasized that the Zcash team will introduce a new turnstile mechanism and a completely new privacy pool in the next upgrade to verify that the privacy pool has not been inflated. He also expressed optimism about formal verification technology, believing it to be a crucial path for improving software security across the industry, especially for privacy protocols.