Following a devastating $230 million hack, WazirX unveils a community-driven recovery plan to mitigate the impact and distribute losses across users’ crypto portfolios.
Points
- Overview of the $230 million hack
- Details of the community-driven recovery plan
- User involvement in the recovery process
After a devastating cyberattack that resulted in a $230 million loss, WazirX is turning to its community for recovery. Founder Nischal Shetty and the team have unveiled a comprehensive strategy to mitigate the impact, involving the distribution of losses across users’ crypto portfolios without affecting INR wallet balances.
The “55⁄45 Model” offers a quick path to recovery, promising faster access to funds compared to traditional recovery processes, which often involve lengthy delays. This method is designed to facilitate immediate liquidity while accommodating users who prefer to wait for their investments to potentially yield higher returns.
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 fastest way to open the platform again for operations is to socialize the loss across the crypto portfolios. INR wallet balance will not be impacted. This partial lock is for crypto portfolio balance only.
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.
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.
The future of WazirX is in the hands of its community. Only time will tell if this recovery plan will be successful.
解説
- Hack impact: The $230 million loss has prompted WazirX to implement a community-driven recovery plan to distribute losses equitably.
- Recovery strategy: The “55⁄45 Model” ensures immediate liquidity and fair distribution of losses across users’ crypto portfolios.
- User involvement: Engaging the community in the recovery process through a poll helps shape the final strategy, considering various factors.