(Prerequisites for resolving hacking assets)
- Strengthening security measures for administrator privileges and Private keys is necessary.
(Even if multi-signature method is not possible, equivalent measures should be prepared.) - Assets affected by the foundation’s actions should not cause harm to the holders.
(Holders will eventually become victims, causing pain to the team and ultimately leading to irrecoverable losses.) - The liquidity of the ALEX system must be maintained.
(Losing liquidity would jeopardize the survival of the project.) - The team’s efforts and determination to achieve the project’s goals are necessary.
(Current Status)
Hacked amount: Approximately 14 million STX stolen.
Assets held: 160 million ALEX COIN + 4 million USDC (amount excluding operating assets for 2 years)
Compensation amount: 1 STX = 0.285 USDC (4 million / 14 million) + 11.4 ALEX (160 million / 14 million)
(Issues)
The lack of demand for ALEX tokens due to the hacking can be considered as rendering ALEX valueless.
Therefore, the value of STX as a replacement compensation cannot be justified.
Ultimately,
It can be seen as a situation causing significant losses to all holders using ALEX, the ALEX team, and VCs.
There are holders who are willing to wait for the team to recover, even if it takes time.
Conversely, there are holders who want to withdraw their investment due to losing trust.
While satisfying them with a recovery equivalent to the hacked assets would be ideal, it is currently impossible.
Therefore, some compromise is necessary,
and here are several alternative proposals.
(Alternatives)
-
Issuance of alSTX -
If all LPs and pool systems are released due to hacking, the team will have to start from scratch to provide liquidity again.
This could lead to losses and problems. Hence, it is necessary to maintain the liquidity and pools of the existing system.
Therefore, considering the need for STX to replace the stolen assets, issuing alSTX is deemed necessary.
STX-related pools will consist of STX-alSTX-POOL TOKEN,
where STX+alSTX: POOL TOKEN is swapped and LP applied. -
RE-FUNDING SYSTEM Preparation -
The team needs a way to recover the hacked assets.
Since internal methods are not feasible, external inflow of STX must be initiated.
Furthermore, there should be a mechanism to redeem and burn alSTX.
Ultimately, a RE-FUNDING and alSTX redemption solution is needed.
I propose issuing ALEX REWARD NFT (tentative name) for this purpose.
-ALEX REWARD NFT SYSTEM-
The team needs a plan to allocate some of the revenue generated from the SWAP system to NFT holders.
I propose the following benefits:
Holders of NFTs can enjoy the following benefits:
-
Coin rewards for project listings (a portion of the listing of projects allocated to holders).
→ It should not be difficult for the ALEX team to negotiate conditions when listing projects. -
Rewards for DEX exchange usage fees.
→ Exemption from fees or a portion of fees allocated to NFT holders. -
Rewards for team profits from SWAP, LP FARM.
→ A portion of the profits allocated to NFT holders.
Other reward processors can be prepared.
The benefits of NFT must be sufficient to make it attractive to prospective investors.
I hope NFTs will become processors like CEX COIN.
Also, there should be enough discretion for the team to redeem NFTs and recover rewards.
I consider this the responsibility of the team regarding NFT issuance.
-RE-FUNDING BUILD Phase 1-
The team prepares to raise funds by issuing a predetermined amount of NFTs.
Here is a suggested method:
-
The total issuance quantity is 5,000 NFTs (for example).
→ 1 NFT: 1,000 STX (based on the PREVATE ROUND) -
The RE-FUNDING SALE follows 3 steps.
- PREVATE ROUND = 1 NFT: 1,000 alSTX (30% allocation)
(For holders who hold alSTX but have a small amount, they should be able to participate with STX for the shortfall.) - ALEX HOLDER ROUND = 1 NFT: 1,200 STX (30% allocation)
- PUBLIC ROUND: 1 NFT: 1,500 STX (40% allocation)
In this way, alSTX redemption and STX fundraising should be arranged.
(The above is just an example, and the team should carefully and thoroughly allocate the quantity based on the total hacked amount and the amount to be recovered.)
-RE-FUNDING BUILD Phase 2-
The team now enables stacking and unstaking of alSTX like LiSTX.
It is believed that there will be enough recovered amount from the hacking.
Also, as the TVL of ALEXLAB increases, the value perceived by NFT holders will rise.
(Conclusion)
Maintaining the existing system while raising funds through Re-FUNDING is the best direction in my personal opinion.
The most important thing is the team’s determination and responsibility.
The team must surely stabilize the project and generate significant profits for their contributions.
I hope, for the sake of us who trusted and continue to trust you, that you will overcome this, even if it takes time.