OneRing Official Reimbursement Plan

As a consequence of the contract exploit that took place on March 21st around 6:00 pm UTC approximately $2,055,760 got extracted by the hacker.

Over the course of the last couple of weeks, users pushed our Alpha to $4,474,812 TVL (Total Value Locked). After the exploit, we managed to recover $2,216,146, which accounts for 49.5% of the original TVL before the exploit.

While we had a specific defender for this kind of exploit, the sheer size of the attack was overwhelming for the implemented mechanisms and led to the loss of funds. If it wasn’t for the defender, all funds would’ve been lost. We’re extremely upset about the loss suffered by users that decided to take a leap of faith by using this very early-stage product and show their support for OneRing. Besides the security measurements in the form of defending mechanisms and audits, we had several disclaimers warning about the risks of early stage products like ours, which needs to be in the back of the minds of anyone reading this.

Despite the fact the Alpha was used at one’s own risk, we want to show our support to those who have shown it to us. To do so, we’re offering the following reimbursement plan:

Official reimbursement strategy

Distribution of secured funds.

• Immediate reimbursement of the funds that we managed to withdraw.($2,216,146). (This will be airdropped to affected users)

Fixed distribution of vested RING tokens.

• 2,000,000 $RING as compensation for the stolen funds
• 12 months linear vesting like Seed/Private/IDO
• Additional offer for locked RING staking already being worked on
• We will set up an order-book based market for the trading of locked RING. Here, our users will be able to sell their locked RING for their desired price. This will work as a RING futures market.

Source of reimbursement funds.

To make up for the loss, the team will tap into our own wallets. To be fully transparent, you can see the emissions of the wallets we’ll be using down below.

The team decided to donate 20% of our Team Tokens (1,500,000 RING or 1.5% total supply) and top it up with 0.5% (500,000 RING) from the reserve and ecosystem wallet. We made this decision to show we take full responsibility for coming up with solutions. We don’t want to hurt the budget of the project so we decided to donate from our own bags.

Timeline for the reimbursement.

We decided on the following reimbursement timeline to hit the sweet spot for all parties including the users of the Alpha, investors of RING, and the project itself. By starting the additional reimbursement in the form of RING with a delayed emission, we make sure to not add unnecessary sell-pressure given the circumstances.

We will make sure to fix all issues of the dApp before relaunching. Once we relaunch and the unlock starts, we will make sure to come back stronger and find ways for people to profit with the RING they receive in compensation.

Thanks for your support.

We want to thank everyone for all the support you have been giving us since the exploit.

To all our partners that were in front of the line helping us, using their dev teams to do quick audits in parallel to our team, we thank you.

To all those partners that keep supporting our products and keep making efforts to promote OneRing, we thank you.

And special thanks to all our users that, even in this dark time, stood with us at Mordor’s gate.

We will come back stronger than ever, together.

We wouldn’t be able to do this without you. Thank you.