Proposal for the Ethereum Fund Recovery Protocol (EFRP)
The Locked Ether Collective (LEC) is proposing the launch of the Ethereum Fund Recovery Protocol (EFRP). This initiative aims to address the issue of locked or lost wallets that have impacted thousands of ETH investors due to gaps in early safety standards. The EFRP is intended to be a structured and fair recovery framework designed to strengthen Ethereum’s governance and resilience for all users.
Addressing Past Incidents and Systemic Issues
In November 2017, the Parity Wallet Freeze resulted in the freezing of 598 multi-signature Ethereum (ETH) wallets. While the exact number of individuals affected remains unknown, this incident led to the freezing of an estimated 513,743 ETH, with a value at the time ranging from $150 million to over $300 million. The LEC is now advocating for a community-driven, non-contentious solution that could benefit all users who have permanently lost ETH due to technical bugs.
The Parity Wallet Freeze is not an isolated event impacting Ethereum investors. Gaps in the cryptocurrency's early safety standards, including vulnerabilities in smart contracts, the misuse of the SELFDESTRUCT opcode, and flawed upgrade or dependency mechanisms, have led to thousands of users losing access to their funds over the years.
The Ethereum Fund Recovery Protocol (EFRP) Explained
The Ethereum Fund Recovery Protocol (EFRP), proposed by the LEC, aims to establish a structured and equitable recovery framework. Its objective is to enhance Ethereum’s governance and resilience for the entire community. This protocol is not a bailout; instead, it is envisioned as a decentralized, transparent, and rule-based system that enables legitimate owners to recover inaccessible ETH without requiring hard forks or altering Ethereum’s core protocol.
The EFRP will be entirely built upon smart contracts and will be governed by a Technical Council DAO. This structure is designed to achieve a balance between immutability, fairness, and accountability, addressing a significant need within the cryptocurrency space.
LEC's Mission and Community Engagement
The LEC is comprised of a small group of individual Ethereum users and holders who were directly affected by the Parity wallet freeze. The collective is not affiliated with Parity Technologies or any related organization. Through the EFRP, the LEC seeks to offer a sustainable, community-approved framework for addressing lost funds and provide relief to users impacted by systemic technical flaws, as opposed to individual errors.
On November 5th, 2025, the LEC published an Ethereum Improvement Proposal (EIP) detailing the Ethereum Fund Recovery Protocol. The ETH community is encouraged to participate in the ongoing discussion surrounding this proposal.