- Origin Protocol has revealed plans of a compensation plan after it was hacked for $7 million in November
- Affected users will receive one of two types of refund – either OUSD tokens or OGN tokens locked for a year
- Origin Protocol tried to convince the hacker to hand back his bounty but with little effect
Origin Protocol, the decentralized marketplace that was hacked for $7 million worth of OUSD tokens in November, has revealed plans to reimburse users who lost funds. The platform has taken a two-pronged approach to compensating affected users, with the amount and type of refund depending on their OUSD holding and whether they held or sold post-hack.
Two-Prong Compensation Plan
Origin Protocol revealed the compensation plan in a Medium post from Micah Alcorn, the Origin Protocol Product Manager, which explained the two-pronged approach dependent upon “your OUSD holdings as well as your activity before and after the hack”:
- Roughly two-thirds will receive full compensation in the form of newly minted OUSD.
- The remainder will receive 25% of their compensation in OUSD upfront and 75% of their compensation in Origin Tokens (OGN) locked for one year. These locked OGN will earn interest at 25% over the year.
Alcorn states that the plan has been constructed to ensure a balance is struck between compensating users and avoiding damage to Origin Protocol itself, who will be left $1 million out of pocket after the experience. However, Alcorn is confident that the reimbursement plan will end well for recipients:
Given the traction that OUSD was experiencing in the weeks leading up to the hack, we’re confident that OGN holders are best served by us regaining momentum with OUSD and accruing value to OGN through future revenue-generating fees.
Origin Protocol Sellers Will Get Less Compensation
Alcorn adds that Origin Protocol has obtained “relevant snapshots to find everyone’s effective, pre-hack balance”, including OUSD tokens held “directly in wallets, automated market makers (AMMs), staking contracts, and centralized exchanges.” Those who sold other OUSD holdings in the aftermath of the hack, a decision described by Alcorn as “understandable considering the circumstances”, will not receive as much compensation:
…we also don’t want to reward this activity by additionally compensating these users when they’ve already recovered some or all of their losses. Therefore, we’ve made adjustments to some accounts based on their post-hack sales of OUSD.
The Origin Protocol compensation contracts will be deployed “by mid to late January”, with compensation claims required within 90 days of the deployment.