Recovery Mode

Definition ∞ Recovery mode in a blockchain or decentralized application refers to a pre-defined operational state activated during or after a critical security incident, system failure, or major exploit. This mode typically involves halting certain functionalities, freezing affected assets, or initiating a coordinated protocol upgrade to mitigate further damage and restore normal operations. Its primary purpose is to protect user funds and maintain network integrity during emergencies. It represents a crucial emergency response protocol.
Context ∞ News reports frequently mention recovery mode when detailing responses to significant hacks, smart contract vulnerabilities, or other critical system breaches in the crypto space. The effectiveness and transparency of a protocol’s recovery mode are vital for maintaining user trust and confidence during times of crisis. Debates often involve the degree of centralization required to execute such a mode and its implications for decentralization principles. Robust recovery mechanisms are essential for the resilience of digital asset platforms.