Current Category System Is Not Equitable

Security Incident
1

The current category system is not equitable and unfairly punishes users who have had the most conviction in the ALEX protocol.

Every measure possible should be taken to fully reimburse all users with STX and not ALEX. There is several issues with this:

  1. The current compensation plan does not fully reimburse the total amount of ALEX to STX lost, but only a fraction of it thereby guaranteeing a loss to those not in Category 1.

  2. The value of ALEX token is severely compromised due to the incident. The token continues to decline in value as the protocol is still down, further worsening the losses of users in Category 2 and possibly Category 3(?).

Leading to the next point, there is no transparency in the deals offered to those in category 3, which allows for the assumption of unfairness to those in Category 2. Everything should be fully transparent.

PROPOSAL:

The full amount of funds available to ALEX and in treasury need to be disclosed.

Lost STX should be replaced with STX for all users. ALEX in treasury should be converted to STX for reimbursement.

Users total reimbursement should be prioritized, even if it means short term pain for the protocol or the ALEX team. ALEX team should use every measure possible to reimburse users since this wasn’t a ‘hack’ but a failure of their own doing.

If the team decides to screw users and prioritize the future of the protocol, the protocol will fail anyway from all of the drama and distrust that would come from the incident and how they handled it. Not to mention reputations entirely ruined in the industry. No one will invest in any current or future projects by the creators of ALEX Lab, XLINK, LISA etc.

If users are fully reimbursed, I believe most will continue to use the protocol and it has a chance to recover. Ultimately, max pain should lie with the ALEX team and not with the users in any recovery scenario chosen.

2 Likes
2

I think this needs to be more balanced; there’s no way to make it, for the good of all people, if we’re not doing this with the best balance between “give everything / the most possible to ALL users AND find what’s best for the future of the protocol / ALEX as a company”.

3

Fully agree.

The team should show the wallet list of category 1,2,3 and their LP sizes, to be transparent.
The team should show all their available assets and treasury as well.

4

Transparency is key. That is a big reason many of us are here.