Web3 Platform Lets Users Decide on Token Unlock After $11M Hack

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Web3 Platform Lets Users Decide on Token Unlock After $11M Hack

After suffering an $11 million exploit in September, Web3 social hub UXLINK is trying a new approach to rebuilding trust – letting its own users decide how recovery will unfold.

Over the past week, the project opened a community vote to finalize what it calls the “Phase 2 Swap & Compensation Plan.” The proposal aims to release a portion of locked tokens to fund reimbursements and stabilize liquidity, effectively turning token governance into a rescue mechanism.

A Grassroots-Led Reset

Instead of issuing a top-down directive, UXLINK’s developers placed the decision in the hands of token holders. The proposal, live on Snapshot until October 9, gives the community a choice: unlock a limited amount of UXLINK tokens early, estimated between 8% and 12% of supply, or stick to the original vesting plan.

If approved, the unlocked tokens won’t go into circulation immediately. They’ll be transferred into a multi-signature vault managed by several signers, creating a pool dedicated to compensating victims and processing redemptions. Investor allocations will remain untouched, ensuring that early backers follow the original release timeline.

Balancing Accountability and Recovery

Part of the recovery strategy involves using assets reclaimed from exchanges and a fraction of the team’s own reserves to reimburse those affected. The plan also includes a token repurchase scheme – a move analysts say could ease market pressure while restoring confidence in the project’s economy.

At press time, the proposal enjoys near-unanimous support, with more than 99% of votes backing the measure. The final percentage for the early unlock will be determined after coordination with partner exchanges and blockchain auditors.

A Test of Decentralized Governance

For UXLINK, which brands itself as a social network built on blockchain participation, this governance moment doubles as a real-world stress test. If successful, it could show that a decentralized community can self-manage recovery after a major breach – something most traditional projects would handle behind closed doors.

The vote marks a turning point for the network’s reputation, transforming a damaging incident into a chance to demonstrate transparency and resilience. Whether the early unlock passes or not, UXLINK’s response is already reshaping how Web3 platforms handle crisis management – through the crowd rather than the company.


The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

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Alexander Zdravkov is a person who always looks for the logic behind things. He is fluent in German and has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.

Source: https://coindoo.com/web3-platform-lets-users-decide-on-token-unlock-after-11m-hack/