In an unfortunate turn of events, Dominion Market, the Solana-based issuer behind the tokenized silver token $SILV, has ceased operations following the September 11 exploit that severely damaged the project's liquidity, working capital, and market structure.
In its announcement, Dominion stated that it “committed the majority of our remaining liquid resources to the pre-hack holder refund program”. That left the project without enough capital to restore liquidity, rebuild the market, and continue operating at the standard the team considered necessary.
The company's website now carries an archived closure record stating that Dominion has ceased operations and that the September exploit made continued operation economically unsustainable.
Dominion launched $SILV on Solana on August 13, expanding the network's tokenized commodity market beyond gold and into physical silver.
The September Exploit Changed Everything
The protocol suffered an exploit on September 11. Dominion later said a malware and social engineering campaign involving individuals posing as investors likely caused the breach. The attackers compromised several Dominion and personal wallets, accessed the project's multisig, and dumped more than 42,000 $SILV worth approximately $2.75 million into a thin liquidity market.
The dump pushed $SILV down more than 70%, with the token falling as low as $0.40 while the underlying silver traded near $64 per ounce.
The exploit also triggered lending liquidations and broader trading disruption. In response, Dominion temporarily froze $SILV acquired after 01:00 UTC on September 11 and later returned those tokens to their previous holders.
The move created another problem. Dominion said circulating $SILV rose from roughly $600,000 before the exploit to about $6 million after the token returns, making a return to the peg much harder.
Dominion Tried to Save the Project
Dominion initially said it remained committed to restoring $SILV's 1:1 silver peg and finding a long-term recovery plan.
On September 18, the team said it was working with partners, platforms, advisers, and potential investors. It identified 3 priorities: maximizing recoveries for affected holders, restoring the $SILV peg, and building a viable path forward. That effort ultimately failed.
On September 28, Dominion opened refunds for eligible users who held $SILV before the exploit and continued holding it afterward. The program offered $63 per $SILV in $USDC, with claims closing on October 5.
Liquidity Providers Got Left Behind?
The refund structure has drawn criticism from parts of the $SILV community, particularly liquidity providers. Some users said they held $SILV through liquidity pools on platforms such as Meteora and Orca before the exploit but did not qualify for the refund program.
One community member argued that liquidity providers supplied much of the liquidity that hackers ultimately drained, while another said they had provided SILV-USDC liquidity on Orca for weeks before the exploit but found their wallet ineligible.
Other users questioned why Dominion could not sell the underlying silver to restore $SILV's peg.
Those complaints added another layer to the fallout because users who supplied liquidity after the crash to help stabilize the market also say they suffered additional losses when Dominion ultimately closed.
What Happened to the Silver?
Dominion's reserve documents provide important context for the questions surrounding the silver backing. A bullion weightlist dated July 28, 2026 lists 150 silver bars containing 150,000 fine troy ounces. The document identifies Dominion Market LLC as the allocated party and Dominion Market Reserve LLC as the designated SPV. It describes the metal as allocated and segregated for the Dominion SILV reserve program.
The same document links the reserve to a Silver Lease Agreement dated June 25, 2026.
However, the reserve structure raises a different question from whether silver existed. Dominion’s Terms of Service state that holding $SILV did not grant legal title to a specific silver bar or ounce. Instead, holders received exposure to silver's price. The reserve documentation also referenced a silver lease rather than outright ownership by Dominion.
That distinction may help explain why Dominion could not liquidate the silver and use the proceeds to restore $SILV's peg.
Dominion Leaves $SILV Behind
With Dominion winding down operations, the protocol has ended minting, redemption, and product support for $SILV. The company’s website also points to a final wind-down and transparency notice, along with supporting onchain transaction links, which it has not yet published.
In the closure announcement, the team said it still believes silver belongs onchain, real-world assets will increasingly move onchain, and that Solana can become a major home for tokenized commodities and financial assets. For Dominion itself, however, that experiment has ended.
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