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Nidhi Kolhapur
Nidhi Kolhapur
Author
Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.
- Jul 27, 2024 10:31 UTC
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WazirX REVEALS Community-Driven Recovery Plan After $230 Million Hack Loss
WazirX proposes a community-driven recovery plan for the $230 million loss, distributing losses across user crypto portfolios.
A 55/45 model allows users immediate access to 55% of their crypto, while 45% is locked as USDT to fund recovery efforts.
The platform plans a long-term recovery involving asset recovery, partnerships, token use cases, and using future earnings to offset losses.
After a devastating cyberattack that resulted in a $230 million loss, is turning to its community for recovery. Founder Nischal Shetty and the team have unveiled a comprehensive strategy to mitigate the impact, which involves distributing the losses across users’ crypto portfolios without affecting INR wallet balances.
Here’s a detailed rundown.
The 55/45 Model: A Quick Path to Recovery
WazirX will decide to use the 55/45 model to speed up the reopening of the platform. This strategy enables the users to have direct access to 55 percent of their digital currencies for trading or withdrawal while 45 percent will be surrendered in order to transform it into equivalent USDT tokens which will be locked.
This method promises quicker access to funds compared to traditional recovery processes, which often involve lengthy delays.
The partial lock is designed to facilitate faster fund access while accommodating users who prefer to wait for their investments to potentially yield higher returns. This approach aims to strike a balance between immediate liquidity and long-term growth.
Committed to Transparency and Fairness
Shetty emphasized that distributing the losses across users is a transparent move that prevents the platform from concentrating instability in one area. This fair approach helps to ensure that the burden of recovery is shared equitably.
The value of unlocked portfolios will be based on average prices from CoinMarketCap and selected global exchanges as of July 21, 2024. Following this, WazirX will enter the long-term recovery phase, which includes asset recovery, new partnerships, token use cases, and airdrops. Future earnings from the exchange will also help offset the losses.
User Input on Recovery: Have Your Say
WazirX is seeking user input on how to handle remaining assets through a poll. The results will influence the final recovery strategy, considering ongoing investigations, liquidity status, and other factors. The deadline for responses is August 3, 2024.
Also Read : Crypto Market on High Alert: MonoSwap Drained in Latest Hack!
The future of WazirX is in the hands of its community. Only time will tell if this recovery plan will be successful.
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