My Proposal for ALEX Compensation Plan
The funds currently available to the ALEX team are as follows:
My proposal involves the introduction of hacked Stacks (hSTX) and frozen Stacks (fSTX).
- 7 million USDC → This can be converted to approximately 3.5 million STX.
- 16% team allocation of ALEX: 10-12% will be used for hack compensation, and 4-6% will be retained for VC block deals and project sustainability.
3. Frozen on CEX(about 3Mil $STX)
Let’s assume BOB, who has a 10,000 STX:20,000 sUSDT pool was exploited. The process will be as follows:
- Return the 20,000 sUSDT to BOB immediately.
- The 10,000 STX will be handled as follows: A + B + C
- A: Distribute native STX from the 7 million USDC in proportion to the total LP ratio. (STX)
- B: Distribute frozen STX from CEX, expected to be recoverable, in proportion to the LP ratio. (fSTX)
- C: Receive the remaining amount of the 10,000 STX - A - B = hSTX.
- now BOB has 1,000 STX from 7mil USD + 1,000 fSTX from CEX + 8,000 hSTX. BOB can handle hSTX as follows:
- Choice A: Exchange 1 hSTX for 8-15 ALEX (need to debate about portion).
- Choice B: Hold hSTX as a virtual token exchangeable for STX recovered from hacker returns, ALEX fee revenue, team allocation block deals, etc.
Bob is free to allocate his 8,000 hSTX however he sees fit.
Lets’ asume BOB use 3,000 hSTX for exchange with ALEX and keep 5,000 hSTX for potential future STX recovery. hSTX holders can look forward to additional airdrops such as XLink, LISA, GAZE.
4. The project team will open a page displaying real-time STX revenue. This real-time revenue is consist of the remaining team allocation ALEX block deals, protocol swap fees, and potential hacker fund recovery. The STX accumulated in this pool will be used for 1:1 exchange between hSTX and STX in future.
5. Users who deposit assets in the STX-hSTX pool can earn ALEX rewards. after the Nakamoto upgrade, hSTX will gradually be pegged to STX if the protocol’s as the protocols’ revenue get higher as Nakamoto speed + New users comming
(and we can create fSTX/STX pool either)
6. The ALEX team will plan to completely burn hSTX over the next 5 years.
(It is also recommended to supplement the scheme with an additional hSTX ↔ ALEX exchange every year)
Bobs’ Final Asset =
1,000 fSTX + 1,000 STX + (3000 x 8 ~ 15 ALEX) + 5,000 hSTX(Can be recovered future)
Advantages of This Process
- **Distinguishes between short-term holders (those who swap hSTX for ALEX and exit) and long-term holders (those who support the recovery of ALEX and anticipate airdrops such as LISA and XLink),
- minimizing the outflow of team allocation ALEX.**
- Enhances the potential for ALEX block deals and recovery in line with protocol improvements.
- Provides liquidity to users by circulating hSTX in the market.
Additional Considerations
The holdings of atALEX holders should be processed at least in conjunction with this compensation plan.