The proposal garnered overwhelming support through a conclusive voting process.
This governance initiative arose following a severe security incident. Let’s discover more about this important news for the ALEX exchange.
Governance Response to Security Breach at ALEX Protocol
The protocol fell victim to an attack involving compromised private keys obtained through a phishing scheme. The exploit resulted in the unauthorized draining of assets from ALEX, necessitating swift and decisive response measures.
The attack specifically targeted a vault associated with ALEX’s liquidity pool, impacting all assets housed within it. Notably, approximately 13.7 million STX tokens were compromised. With approximately 3 million STX subsequently transferred to various centralized exchanges (CEXs).
Source: X
The approval of the governance proposal underscores the community’s commitment to mitigating the impact of such incidents and supporting affected stakeholders. By utilizing 100% of protocol revenue for additional grants to Recovery Certificate holders, ALEX aims to expedite the recovery process and restore confidence in its ecosystem.
Moving forward, ALEX will continue to enhance its security protocols to prevent future breaches and safeguard user funds. The governance decision reflects a proactive approach to addressing challenges within the DeFi space, emphasizing transparency, accountability, and community resilience.
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