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UXLINK is set to conduct its first token buyback this weekend, October 18-19, utilizing funds recovered from centralized exchanges. This initiative is a crucial part of the project's compensation plan aimed at reimbursing users affected by a recent security breach that resulted in approximately $11.3 million in losses. The buyback marks a significant step in UXLINK's recovery efforts following the incident.
Key Takeaways
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UXLINK will perform its initial token buyback on October 18-19.
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The buyback will be funded by assets recovered from centralized exchanges.
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Repurchased tokens will support the community-approved Swap & Compensation Plan.
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Enhanced security measures and future buybacks are planned.
Post-Hack Recovery and Compensation
Following a security breach that exposed a vulnerability in its multi-signature wallet, UXLINK is launching its first token buyback. The operation, scheduled for October 18-19, will be financed by assets that have been returned by centralized exchanges, including Bybit and Bitget. These recovered funds are part of the $11.3 million in digital assets lost during the hack last month.
The buyback will occur on exchanges that have reinstated trading for UXLINK (UXLINK) tokens after the project's migration to a new Ethereum mainnet contract on September 25. This new contract includes enhanced security features, such as the removal of mint and burn permissions, and has undergone new security audits.
Community-Driven Buyback and Compensation Plan
All tokens repurchased during this buyback event will be allocated to UXLINK's Swap & Compensation Plan. This plan received overwhelming support, with 99.99% approval from the community on October 4. It aims to ensure equitable compensation for all affected holders, both on-chain and on centralized exchanges, based on a snapshot taken on September 22.
The recovered funds, a portion of which will be used for this initial buyback, were secured in collaboration with security firms SlowMist and SEAL 911. These partners were instrumental in tracking the stolen tokens and monitoring wallet activities across various blockchains. UXLINK anticipates further buybacks as more assets are retrieved from cooperating platforms.
To bolster compensation liquidity, UXLINK will unlock 8-12% of its community, team, and treasury tokens, which were originally subject to long-term vesting schedules. This adjustment is strictly for recovery purposes and does not impact investor allocations.
Strengthening Security Measures
In response to the security incident, UXLINK has implemented a series of security upgrades. These include the integration of hardware wallets, the introduction of quarterly red-team penetration tests, and an expansion of its bug bounty program. Additionally, the project has enhanced user protection through tiered onboarding processes and zero-knowledge verification.
These measures are part of a broader strategy to improve platform functionality, bolster security, and re-engage the community. UXLINK has reported a significant increase in community participation, with engagement in governance and social channels rising more than fivefold since the hack.
Sources
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