xSNX Compensation Mechanics

To compensate xSNX holders for losses from the August exploit, we’ve deployed an rXTK contract and funded it with XTK. As a reminder, we are a small project with a very limited treasury, so we’re forced to be creative with compensation plans. We are a dedicated team still very much focused on our goal of building a decentralized asset management stack, and we want to give our community an opportunity to recoup full value.

We’ve funded the rXTK contract with ~4.04m XTK — a value derived by applying the same ratio of USD losses to XTK as we used for the previous exploit. We know that to some members of our community this resolution may leave something to be desired. Rest assured that we’ll be continuing to build, working to drive as much value as possible to the xToken ecosystem.

Notice: Do not claim your rXTK before reading the FAQ below in full.

What is rXTK?

rXTK is redeemable XTK allocated to xSNX holders, proportional to their USD losses.

When should I redeem rXTK?

This depends on you. rXTK vests linearly over the course of the next year. So the longer you wait, the more you will receive.

What are the benefits of waiting to redeem rXTK?

If, for example, an rXTK holder redeems their rXTK 1 month into the 1 year vesting period, they will only receive a fraction of total potential XTK. Additionally, all early redeemers are indirectly paying later redeemers. If you redeem early, you are foregoing unvested XTK to the benefit of those who have yet to redeem.

How do I claim rXTK?

Head to the dashboard at xToken Cafe. If you have claimable rXTK, you will see your rXTK balance and the amount of XTK you will receive if you claim right now. You can press the claim button to receive your XTK.

Please note that if you claim your rXTK, you are claiming all of it. You can only claim once. Once you’ve claimed, you will no longer have rXTK.

If I burned my xSNX already, was I included in this distribution?

Yes. We allocated rXTK based on a pre-exploit snapshot.