Cypher, a Solana-based decentralized exchange that suffered a major hack earlier this month, has announced plans to hold a public token sale to recover and continue its growth after the event.
According to the exchange's statement, more than 45% of the tokens will be directly available to the public through sale.
Cypher was a protocol that allowed users to trade and exchange various assets on the Solana blockchain, known for its high speed and low fees.
However, Cypher suffered a devastating hack on August 7 that drained a large part of the liquidity pool and caused over $1 million in losses in various assets. The hacker exploited a vulnerability in the protocol's smart contract and was able to withdraw funds from the pool without paying any fees or slippages.
The Cypher team has decided to quickly execute the first decentralized exchange offering (IDO), originally scheduled for the end of September. IDO will allow Cypher to raise funds for development and replenish its treasury, as well as reward its loyal and influenced users.
In response to our recent exploit, Cypher is fast tracking an IDO.
Here’s the game plan. pic.twitter.com/DFnJFvj4zD
— cypher ©️ (@cypher_protocol) August 23, 2023
According to Cypher's blog posts and tweets, IDO will have a unique tokenomic structure that favors the community over team insiders. More than 45% of the tokens will be sold to the public, with 23% set aside for the team, 11% for investors, 1.2% for advisors and 12% for growth incentive programs.
Another 7.3% will go to the token's airdrops. It is not yet clear how Cypher will manage the airdrop, which many of its new customers expect will be based on their activity as measured by a point system prior to the August 7 attack. In any case, it will distribute 50 million tokens to depositors who lost money due to the hack.
*Not investment advice.
