Holders affected by the April 2023 Terraport hack on the Terra Classic blockchain might finally see some relief, with TerraCVita, a LUNC validator, finalizing a compensation package.
Key Points
- Compensation, Not Refund: TerraCVita clarifies the initiative focuses on compensating victims, not a full refund, as they argue Terraport itself didn’t steal the funds.
- Package Details Remain Unclear: While the framework is finalized, specific details and compensation amounts haven’t been disclosed.
- Prioritizing Cooperative Victims: Those who reported the incident to authorities and actively aided recovery efforts might be prioritized.
- Funding Concerns: Raising fees on the Terraport DEX (decentralized exchange) is a potential source, but this could negatively impact the TERRA token price.
- Community Input Sought: Proposals from community members have been received, but the chosen plan remains unknown.
This will be a massive achievement for the @TerracVita team building @_Terraport_ and impact the whole community.
.
Already under massive demand, once the shackles are removed and the full power of Terraport is released there will be no stopping the #TerraClassic community's… https://t.co/DjC1xUu2aG— Rexyz (@RexYellerBelly) March 19, 2024
Read Also: Cross-Chain NFT Staking Goes Live on Enterprise DAO for Cosmos Blockchains
Background on the Terraport Hack:
- Attack and Losses: In April 2023, hackers exploited Terraport’s liquidity wallet, losing $4 million worth of assets for liquidity providers (LPs).
- Tracing and Recovery Efforts: Stolen funds were laundered through exchanges like MEXC, KuCoin, and Binance. Collaborative efforts led to the freezing of some assets and law enforcement involvement. A proposal to lock recovered funds on-chain was rejected by the community.
Read Also: XRP: Can it Reclaim its Glory Days?
Looking Ahead:
- Compensation Not Guaranteed: While a framework exists, full compensation isn’t guaranteed.
- Community Collaboration: Cooperation with authorities and active participation in recovery efforts might influence compensation prioritization.
Despite the lack of specifics, this development offers a glimmer of hope for Terraport hack victims. The coming weeks should reveal more details about the compensation plan and its execution.