Indian crypto exchange WazirX has introduced a new plan to help users recover from the recent hack. The company is using a “fair and transparent” strategy that shares the financial loss equally among all users, ensuring that everyone is affected equally by the hack.
The exchange is implementing a “fair and transparent” strategy designed to distribute the loss evenly among all users, rather than concentrating the impact on just a few. This approach is intended to ensure that the consequences of the hack are shared across the entire user base.
WazirX Unveils 55/45 Plan for Faster Crypto Recovery
Following the recent hack, WazirX has introduced a unique 55/45 approach to expedite and enhance the recovery of funds. This strategy allows users to access a significant portion of their assets immediately, with the possibility of further recovery for those willing to wait.
Under this plan, WazirX offers two options for managing the remaining crypto assets. First, users will have access to 55% of their assets for trading or withdrawals. The remaining 45% will be converted into a USDT-equivalent token and locked.
To ensure fairness and stability, WazirX will create a balanced portfolio for the 55% of assets that are unlocked. This portfolio will use a mix of available crypto assets on the platform. If the unlocked portion includes affected tokens, WazirX will replace them with unaffected assets from its platform. In an official blog post, WazirX explained:
“By socializing the loss, we ensure fairness across our user base and preserve the exchange’s stability. This approach balances quick access for some with potential recovery for others, aiming to resolve the situation more efficiently than traditional methods.”
WazirX Plans Additional Recovery Measures, Says Nischal Shetty
Nischal Shetty announced that WazirX is actively working on recovery efforts and collaborating with external partners to address the hack. The exchange is exploring various options, including airdrops and new token use cases, to assist in the recovery process.
Shetty emphasized that recovering such a significant amount of funds will take time. He noted that by adopting a socialized loss approach, similar to strategies used by other impacted exchanges, WazirX aims to reopen the platform for all users sooner.
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