Stargate Proposes To Reissue STG Tokens On March 15 To Avoid Damage From Alameda

Key Points:

• Stargate proposed to reissue new STG tokens on March 15 to eliminate the risk of illegal transfer of STG from damaged Alamada wallets.
• A snapshot of all user balances will be taken, and new tokens will be airdropped to each user on a 1:1 basis.

The cross-chain bridge Stargate proposed to reissue new STG tokens on March 15 and airdrop them to all STG holders to eliminate the risk of illegal transfer of STG from damaged Alamada wallets.

According to the proposal, on March 15, a snapshot of all user balances will be taken, and new tokens will be airdropped to each user on a 1:1 basis.

The 100,000,000 tokens that Alameda purchased and then sold won’t be stolen and traded on the black market, harming Stargate by carrying out this reprint. A dedicated multisig wallet will be used to keep the launch auction component until additional instructions are issued by stakeholders. Absent such direction, they won’t be influenced in any manner.

Previously, Alameda purchased 10% of the total supply of STG from Stargate’s community sales in March 2022 and promised to lock the warehouse until March 2025, but StargateDAO found that Alameda Research‘s security loopholes may cause the agreement to own the liquidity and security of token holders are facing significant threats, and the recent on-chain transfer of the Alameda wallet shows that Alameda does not have full control over its wallet and that funds are being transferred illegally.

It is impossible to overstate the impact of a bad actor having access to Alameda’s wallets and the potential harm to token holders and Stargate. A malevolent actor with access to Alameda’s private keys might take the Stargate tokens from the contract as they vest and misappropriate them, just as they appear to have done with other monies, in the absence of a token re-issuance. The following may happen if such a person were to assert and then sell STG on the market in violation of the three-year lockup agreement.

Users will be required to deposit liquidity into the new contracts in order to begin farming STG and supporting Stargate. All farm contracts will be re-enabled with the new STG token as the reward is delivered.

Due to probable security problems at Alameda Research, Stargate presents a substantial danger to POL and the security of token holders. Holders would get a token that is similar to their present supply and status for STG as part of a planned token exchange to a new STG token. A successful move would keep the protocol’s potential catastrophic upside while preserving stable, resilient markets for STG.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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