Breaking away from the news domination of Ethereum, let’s take a look at what Solana has been doing since the news of some of its wallets being attacked. The Solana-based Phantom Wallet has introduced the Burn NFT Feature! This announcement came in soon after the recent SOL incident; where a massive hacking attempt on the Solana-based crypto wallets happened in the first week of August. The hackers were able to take away around $5.2 million worth of cryptos after hacking into close to 8,000 Solana-based crypto wallets. Many reports said that those wallets were mainly Phantom wallets.
The new feature that Phantom announced, the Burn NFT Feature, will allow users to earn SOL tokens as a reward in a bid to thwart the rampant frauds in the crypto space for reporting spam! Solana’s head of communications, Austin Fedora, recently mentioned in a tweet that “60 per cent of the wallets drained” in the attack were Phantom wallets. Phantom’s new feature encourages users to report scams and earn SOL tokens by burning NFTs.
Over time, it became clear the impact was isolated to Solana wallets, but there was still no clear pattern of which were impacted.
Plus, there were still several verified ETH users who had been drained.
— Austin federa | 🔥💃 (@Austin_Federa) August 3, 2022
What is Burn NFT Feature?
Acknowledging the difficult situation of navigating spams, Phantom, came up with this solution. In their blog post, Phantom mentioned that users will be able to find this new feature in the Collectible tab of the Phantom wallet app. The blog post also mentioned that the users will be rewarded with SOL tokens as “rent” once the burned token is removed from the wallet.
Excerpt from the Phantom Blog Post
To remove unwanted wallet spam, simply select the NFT you want to burn in the Collectables Tab and select the Burn Token function located in the top-right ellipsis menu. Once an NFT is burned, the token is permanently removed from the wallet and you receive a small deposit of SOL that serves as the “rent” used to pay for storage. And while spam NFTs clutter wallets, they are never dangerous to burn.
This builds upon the blocklist of spam and phishing NFTs we have been maintaining and open source with the community. When our full-time globally distributed team finds out about a scam NFT, the contract address and domain is added to a block list which hides the NFT from the wallet and creates a warning that the site is malicious.
Our blocklist has already 800+ mint addresses of malicious NFT collections and is integrated with how we identify scams in our site blocking.
Read the whole blog, here.
How will the Burn NFT Feature Help Solana?
This new feature of the Phantom wallet will help in making the Solana ecosystem a lot more secure. In a blog post, Phantom said, “We’re still in the wild west days of Web 3. As the crypto ecosystem grows, so have the bad actors, looking for ways to steal user’s fund,”. With the rapid growth of the crypto space, cases of hacking attacks, hackers taking advantage of the new space ignorance, and spam NFTs have also seen a rise.
Benefits for the Users due to the Burn NFT Feature Upgrade
This new feature will help in ensuring more security for the Phantom Wallet. The Burn NFT feature will give the users control to report spam which will help in blocking the contract address and domain. The investors can also earn SOL tokens as “rent” by reporting spam NFTs. Given the risks involved in any asset class similar to cryptos, users should be wary of transactions that involve third-party websites.
Additional Read: Solana Price Prediction