WazirX’s Community-Driven Recovery Plan After $230 Million Hack
WazirX, a popular centralized cryptocurrency exchange, has found itself in a tough spot after a recent cyberattack resulted in the loss of approximately $230 million. However, the platform is taking a unique approach to recovery: **a community-driven plan**.
Founder Nischal Shetty and the team have unveiled a detailed plan that involves **socializing the losses across users’ crypto portfolios**. This plan aims to be transparent and fair, avoiding any impact on INR wallet balances.
Here’s how the plan works:
* **55/45 Model:** Users will have direct access to 55% of their digital currencies for trading or withdrawal. The remaining 45% will be surrendered and converted into equivalent USDT tokens, which will be locked. This approach aims to provide quicker access to funds compared to traditional recovery processes.
* **Long-Term Recovery:** This phase kicks in after the initial disaster recovery phase and focuses on:
* **Stolen Asset Recovery:** WazirX is actively pursuing the recovery of stolen assets.
* **Partnerships and External Help:** The platform is seeking assistance from external partners and experts.
* **New Token Use Cases and Airdrops:** Exploring new ways to utilize tokens and potentially offer airdrops to users.
* **Future Earnings:** WazirX plans to use a portion of future earnings to offset the losses.
WazirX is actively engaging the community in the decision-making process. A poll has been launched to gather user feedback on the recovery approach. The results will be considered alongside ongoing investigations, platform liquidity, and other factors before making a final decision. The deadline for user input is August 3, 2024.
This community-driven approach reflects WazirX’s commitment to transparency and fairness. It’s a unique response to a challenging situation, and it remains to be seen how this plan will unfold in the coming months.
