GMX has announced the launch of a compensation plan to distribute $44 million to GLP token holders affected by a hack in July.
Details of the Compensation Plan
Affected users can now begin to claim their distributions. The $44 million compensation plan will be issued in GLV tokens, alongside a $500,000 incentive pool for users who retain their allocated GLV. The update was shared on the company's social media.
Reasons for Announcing the Compensation Plan
On July 9, the V1 GLP pool on Arbitrum fell victim to a cyber exploit resulting in a loss of $42 million due to a protocol flaw. The compensation plan was developed to return funds to affected users.
State and Trading Volumes Post-Hack
Despite the hack, the exchange remained unaffected and continues to show rising volumes and liquidity. The total trading volume as of today is $315,046,915,809. The DAO is working on recovery solutions within decentralized finance, with token redemptions expected to resume in 10 days.
The GMX compensation plan aims to support affected users and restore confidence in the platform following the incident. The launch of this new plan could help GMX regain its standing in the market.
