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NEWSLETTER SIGNUP My account Log Out Aug 24, 7:20 AM EDT Business Technology World National Politics Media & Culture Opinion Sports Social Capital Crypto NEWSLETTER My account Log Out US Edition Business Technology World National Politics Media & Culture Opinion Sports Social Capital Crypto Listings & More Spotlight Glossary Editions Australia Edition India Edition International Edition Singapore Edition United Kingdom United States NEWSLETTER Follow Us Editions Australia Edition India Edition International Edition Singapore Edition United Kingdom United States Crypto Cypher Announces Recovery Plan After Exploit, Plans To Hold Public Token Sale By Monica Aggarwal @monicaggarwal 08/24/23 AT 4:19 AM EDT Share on Facebook Share on Twitter Share on LinkedIn Share on Reddit Share on Flipboard Reuters KEY POINTS Cypher said over 45% of tokens will be sold to the public, while 23% will go the team Around 7.3% (50 million) of the tokens will be airdropped to affected depositors The exchange is attempting to recover the hacked funds from the attacker Cypher intends to hold a token sale with the aim of recovering from a hack that crippled the Solana-based decentralized exchange earlier this month. The crypto exchange lost upwards of $1 million in various assets when a hacker drained a majority of its protocol on Aug. 7. Cypher plans to use the proceeds from the token sale to replenish the project's depleted treasury and finance the development of new assets, according to CoinDesk . "The protocol's continued development and success will be used to make users impacted by the exploit whole over time," the trading platform said in a recent blog post . In a thread on X, formerly known as Twitter , Cypher said more than 45% of tokens will be sold to the public, while 23% will be reserved for the team. Twelve percent will be allotted to growth incentive programs, 11% to investors and 1.2% to advisors. Cypher will then airdrop around 7.3% (50 million) of the tokens to depositors who lost money to the hack. The protocol plans to refund affected depositors at a rate of 31 cents on the dollar with the help of the funds not stolen in the hack. Today, we’re announcing the most fair token launch in Solana’s history. This isn’t your average @solana token with low float and a high FDV. It’s the opposite.⁰ Take a look for yourself. pic.twitter.com/SxyR7XKQeb — cypher ©️ (@cypher_protocol) August 23, 2023 At the same time, the crypto platform is implementing the "socialized losses" mechanism in response to the exploit. "Socializing losses refers to a mechanism by which the adverse effects of an unfortunate event, like a protocol exploit, are distributed across all users rather than being borne by a few," the blog explained. Cypher will expedite the initial decentralized offering (IDO) plan, which was originally slated for the end of September to strengthen the platform's financial foundation and compensate those affected by the hacking incident, the trading platform added. "Before initiating the IDO, Cypher will transition funds from the existing smart contract to a new one. This facilitates the process for impacted users to claim their designated redemption packages," the blog further said. As part of the recovery plan, the Solana -based trading platform will generate a pro rata redemption package of current assets in its protocol, which users can redeem through a web interface, CoinTelegraph reported. Meanwhile, Cypher is still attempting to recover the hacked funds from the attacker . It has managed to freeze $600,000 worth of crypto in centralized exchanges (CEXs). "The return of these funds will be predicated on the cooperation of these CEXs and seizure warrants being issued by law enforcement," the platform noted on X. 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