Proposed Treasury Grant Program

Recovery of Users Assets Taken by Exploiter

We continue working closely with our legal counsel and local law enforcement agencies to help with the recovery of assets of ALEX users that were taken by the exploiter. Our team is monitoring the asset movements of the wallets suspected of being associated with the exploiter.

Treasury Grant Program

In the meantime, we are planning for the treasury grant program to support users whose assets were taken by the exploiter and remain unrecovered, subject to such users fulfilling eligibility requirements to be announced that are applicable to users seeking to participate in the treasury grant program.

The preliminary framework of the treasury grant program is as follows :

Category 1: Out of about 4,000 wallets of users that had contributed assets to ALEX liquidity pools affected by the exploit, and subject to such users fulfilling Category 1 eligibility requirements and verification of the LP positions (“LP Position Verification”) of these wallets including verification of the assets that could have been withdrawn from the ALEX liquidity pools (“Withdrawable Assets”) by these wallets based on these LP positions had the exploit not resulted in assets being taken from these affected ALEX liquidity pools, we intend to offer such users a treasury grant of assets equivalent to the Withdrawable Assets to 3,200 of these wallets (i.e. about 80% of the total affected users).

Category 2: If you are not eligible for Category 1, you may be eligible for Category 2. Subject to LP Position Verification including verification of Withdrawable Assets of your wallet affected by the exploit and you fulfilling Category 2 eligibility requirements, you will be offered the following three choices :

(1) You can opt out of Category 2, and wait for the recovery of your assets taken by the exploiter.

(2) You can opt for a treasury grant of assets equivalent to your Withdrawable Assets except that if your Withdrawable Assets includes STX, the treasury grant of assets will not include STX but will include the $ALEX equivalent of the amount of STX in your Withdrawable Assets based on an exchange rate of 8.582701 $ALEX for each STX (as of May 13, 2024 from Coingecko). $ALEX granted to you together with the rest of the assets subject of such treasury grant will be returned to you immediately.

(3) You can opt for a treasury grant of assets equivalent to your Withdrawable Assets except that if your Withdrawable Assets includes STX, the treasury grant of assets will not include STX but will include the $ALEX equivalent of the amount of STX in your Withdrawable Assets based on an exchange rate of 12.874052 $ALEX for each STX (as of May 13, 2024 from Coingecko). The assets subject of such treasury grant, except for such $ALEX equivalent of STX, will be returned to you immediately whereas such $ALEX granted to you will be vested over 12 months, with the first unlock after 6 months and linear vesting for the next 6 months.

Category 3: If you are not eligible for Category 1 or Category 2, you may be eligible for Category 3 subject to LP Position Verification including verification of Withdrawable Assets of your wallet affected by the exploit and fulfilling Category 3 eligibility requirements. We will be reaching out to those eligible for Category 3 to discuss further details.

We will be making further announcements as and when the detailed framework and terms of the treasury grant program including applicable eligibility requirements, are finalised.