WazirX plans to distribute recovery tokens to compensate users affected by its July 2024 security breach. The strategy includes a rebalanced portfolio, profit sharing, asset recovery, and DEX initiatives, pending community approval.
After a security breach in July 2024 that let people into its multi-signature wallet, WazirX is going to give out compensation tokens. Since then, the exchange has been working on a pay plan.
A rebalanced portfolio is now at the center of its plan to get back on its feet. When operations start up again, tokens in the rebalanced portfolio will be part of the first step of distribution.
WazirX Plans to Repay Victims
The recovery plan needs to be approved by a majority of people in order for the restart to happen. CEO Nischal Shetty talked about three more ways to get money back: profit sharing, trying to get back stolen assets, and decentralized exchange (DEX) projects. He said again that WazirX is committed to user value and being open and honest.
A user asked why 15% of their USD value wasn’t showing up on their screen as of July 18, 1 PM, and wanted to know if the company would restore the full amount. In reaction, a WazirX executive came up with the RT token.
“We will issue RT tokens and use them to distribute any future recovered funds to token holders,” Shetty said. “The value of RT tokens will be based on the total value of stolen assets. If enough people are interested, we may also list RT tokens for trading.”
WazirX’s plan for recovery depends on community agreement and tokenization, which strikes a balance between openness and practical limits. The exchange wants to rebuild trust by combining asset recovery, profit sharing, and DEX integration.
But success depends on how well users are aligned and how well the plan is carried out. WazirX’s success will depend on how well it handles problems.
