Dominion shuts down after exploit-triggered liquidity collapse hit its Solana silver token

Dominion, a Solana-based tokenized silver project, said it is shutting down after a September security incident severely damaged SILV, its silver-backed token. The team said the attack led to a large amount of SILV being compromised and sold off, which was followed by a collapse in liquidity, losses to operating capital, and damage to the market structure. According to Dominion, the capital required to rebuild the project now exceeds its remaining resources. Most of the project’s remaining liquid funds have been allocated to a refund plan, under which eligible pre-attack SILV holders can exit at $63 per token. SILV was originally structured as a Solana token backed 1:1 by physical silver, with each token representing one troy ounce. Dominion also said that on Sept. 11, an attacker gained control of its 3-of-5 multisig keys and sold about 46,900 SILV into a thinly liquid decentralized exchange market. Those tokens had a notional value of about $3 million before the attack, but the attacker ultimately cashed out roughly $238,000.