WazirX is issuing new Recovery Tokens (RT) to distribute stolen and recovered assets to its users, according to statements from the company’s founder, Nischal Shetty, who also said that these tokens could soon hit the trading floor if there’s enough interest from users, offering a chance for liquidity and additional market exposure.
The token distribution of course comes after WazirX completed its rebalancing process for Net Liquid Platform Assets (NLPA), which realigns platform assets with its liabilities.
WazirX’s recovery plan includes three main strategies: profit-sharing, stolen asset recovery, and the launch of a decentralized exchange (DEX). “We will do everything we can to help create value for our tribe,” Shetty said, addressing WazirX users directly.
How WazirX will execute its first major token distribution
The Singapore High Court greenlit WazirX’s parent company, Zettai Pte Ltd, to hold a meeting with its Scheme Creditors on January 23 where creditors will vote on whether to proceed with the Scheme of Arrangement, which includes the immediate distribution of rebalanced assets.
If approved, creditors will receive compensation in the form of tokens rather than fiat, giving them market exposure for possible price appreciation.
According to WazirX’s official blog post on the matter, users can now check their allocation on the platform’s First Distribution page, which shows their computed token breakdown, current market value, and their effective USD recovery percentage.
Under Shetty’s post, a user raised concerns about the fluctuating token values and discrepancies in displayed balances. “NLPA value is different and current value in USD is different. Please explain,” the user asked. Shetty clarified that: “You get to keep any market upside or downside from here on.”
The planned token distribution will be executed within 10 days of Scheme approval, according to WazirX’s blog, though certain tokens like ANT, LOVELY, PUSH, GFT, OOKI, MDX, BOB, and WRX, which have low market liquidity, will be partially distributed in their original denominations. Any remaining balance will be settled in USDT or another stablecoin, said the exchange.
WazirX’s plans for future recoveries
A creditor questioned Shetty directly: “If you currently display 85% USD value for July 18, 1 PM, where’s the 15% USD value? How are you going to show it?” Shetty confirmed that the missing portion ties directly to the newly issued RT tokens.
According to WazirX’s statement, if the Scheme is rejected by the creditors, that would force them to wait until ownership disputes over the platform are resolved, a process the exchange believes will be messy and slow.
WazirX also said that token prices are based on live market data from Coinmarketcap, and values are subject to change. By toggling between INR and USD, users can view their recovery amounts in real-time.
But WazirX did warn that minor variances of up to 0.5% in recovery amounts are possible due to the large number of token transactions during rebalancing and crypto price volatility.
Cryptopolitan Academy: How to Write a Web3 Resume That Lands Interviews – FREE Cheat Sheet
Source: https://www.cryptopolitan.com/wazirx-rt-tokens-distribute-recovered-funds/