For its depositors, who were adversely impacted by the flash loan attack in November, the Origin Protocol team has unveiled a reimbursement package. The team stated that there is already a proposal to pay equivalents of 100 per cent, the amount that was deposited at the time of the OUSD hack.
Two Remuneration Plans
Still, the team states that before and after the hack, one’s OUSD holdings will be a primary determinant of the payout package they will get. In an update published through Medium, Micah Alcorn, who is the Origin Protocol Development Engineer, says that “Approximately two-thirds of affected users will receive full compensation in the form of newly minted OUSD. The remaining affected users — mostly larger depositors — will receive 25% of their compensation in OUSD upfront and 75% of their compensation in Origin Tokens (OGN) that are locked for one year.”
Alcon continues to say that, for the consumers to be compensated “for the time value of money and not having all their funds available upfront, locked OGN will earn interest at 25% over the year.” This means that “users will receive 1.25x the value in OGN one year after the compensation program goes live.” This OGN portion of compensation is set to start in a few weeks.
Out of Pocket Compensation
In the meantime, the team maintains that the pay package will not affect the future of the project adversely. Stressing this issue, says Alcorn, “While the out-of-pocket portion of this compensation will be a substantial one-time expense for Origin, we remain well-capitalized with plenty of runways to ensure the success of OUSD and our other e-commerce products.”
Interestingly, the update says founders will not obtain any money after losing more than $1 million in the hack as part of this strategy. The hack, which happened in the early hours of Tuesday, 17 November, resulted in millions of dollars worth of tokens vanishing. Confirming the hit, one of the project founders says they are now negotiating with exchanges to find the perpetrator and freeze the tickets until they are liquidated.
The Origin Protocol team quickly proposed $1 million as a reward to anybody with the knowledge that would help retrieve the stolen funds immediately after the flash-loan attack. Besides, to freeze and recover the stolen money, Team Origin vowed to cooperate with exchanges and third parties. However, there were no new reports on this at the time of publication, although the stable coin still trades at $0.15.
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