Proposal for Reimbursement Following October 2024 Exploit
In response to an exploit that occurred in October 2024, the 1inch Foundation has put forward a proposal aimed at reimbursing users affected by the security breach. This initiative, known as 1IP-80, suggests allocating $768,026 in USDC from the treasury of its decentralized autonomous organization (DAO) to cover the estimated value of the tokens stolen during the attack.
Details of the Compensation Process
The 1inch Foundation, which specializes in decentralized finance (DeFi) and serves as a DEX aggregator, will take responsibility for verifying claims and distributing the compensation. To qualify, users must complete a Know Your Customer (KYC) identity confirmation, provide proof of their losses, file a report with police authorities, and agree to a compensation contract. While the exact KYC details remain unspecified, it’s noteworthy that 1inch typically does not require KYC procedures for trading on its platform, making it appealing for users seeking alternatives to centralized exchanges.
Background of the Incident
This initiative follows a serious incident on October 30, 2024, when hackers exploited a vulnerability in the Lottie Player library, a tool used for animations on websites, to hack into the 1inch decentralized application. In contrast to a more recent breach in March 2025, which saw the band return a significant portion of the $5 million stolen through negotiations, the October exploit left victims without restitution until now.
Conditions of the New Proposal
Under the terms of the new proposal, approved funds would be transferred to the Foundation, which would then handle claims and manage payments. However, victims would relinquish any claims to assets recovered in the future, which would be returned to the DAO’s treasury.
Current Voting Dynamics
As of the latest update, the voting process is underway, with 30 participants casting their votes. Currently, the proposal has garnered a 53.47% approval rating, translating to approximately 3.8 million votes in favor compared to 3.3 million against. The voting dynamics show a significant influence from two large wallets—one controlling all the dissenting votes and the other backing the approval with 2.2 million of the supportive votes. The opposing wallet has raised concerns that the DAO should not assume the role of an insurance provider, pointing out the absence of consistent revenue streams. The vote will remain open until June 22, 2025, allowing for further stakeholder input.
