1.3 million AZTEC tokens stranded as DV Labs misses Aztec exit deadline

DV Labs' planned exit from Aztec on August 15 was incomplete by 2 a.m. UTC on August 16, with seven attesters still in the VALIDATING state and 1.386 million AZTEC in effective stake. The operator announced the wind-down on July 16 and requested delegators to exit by August 5, warning of penalties for late exits, though no mechanism for penalties has been identified. Aztec's staking dashboard still attributed 16 delegations and 3.2 million AZTEC to DV Labs, but it is unclear if all stakes belonged to unrelated parties. Direct reads of the Rollup contract showed seven attesters as VALIDATING, with none EXITING or ZOMBIE. Current Aztec documentation does not define August 5 as a forfeiture date, leaving the exit process open. The voluntary Alpha flow requires an exit initiation, followed by a four-day delay, during which stakes do not earn rewards and remain exposed to slashing. Four of the seven VALIDATING positions were below the 200,000-AZTEC activation stake, with a combined reduction of 14,000 AZTEC. Aztec's slashing rules include a 2,000-AZTEC inactivity penalty, but no evidence links these to DV Labs' balances. The remaining positions represent about 0.22% of the active set and 0.21% of active stake. The situation indicates an unfinished Aztec exit rather than a network-wide disruption, leaving the implications of DV Labs' warning and potential losses for late delegators unresolved.

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