UXLINK’s Inaugural Token Buyback
This weekend, on October 18-19, UXLINK will initiate its inaugural token buyback, utilizing funds that have been recovered from centralized exchanges in the aftermath of a notable security incident. This event is a significant milestone in the project’s strategy to bounce back from a hack that previously compromised its multi-signature wallet, leading to a loss of approximately $11.3 million in digital assets.
Details of the Buyback
In a message posted on October 14th on X, UXLINK detailed that the buyback will be financed by assets successfully reclaimed from exchanges such as Bybit and Bitget, following the vulnerabilities exploited during last month’s security breach. The buyback will occur on exchanges that have resumed trading of UXLINK (UXLINK) after a migration to a new Ethereum mainnet contract, which took place on September 25. This updated contract includes enhanced security features, like the removal of mint and burn permissions and completion of new security audits.
Community Compensation Plan
The repurchased tokens will be allocated towards UXLINK’s Swap & Compensation Plan, which garnered overwhelming community approval of 99.99% on October 4. The intention behind this plan is to ensure equitable compensation for users—both those engaged in on-chain transactions and those on centralized exchanges—based on a snapshot taken on September 22 at 14:55 UTC.
Collaboration with Security Experts
The funds earmarked for this initial buyback form part of the frozen assets returned through collaboration with security experts, SlowMist and SEAL 911. These firms played a crucial role in tracing the stolen tokens and monitoring wallet activities across different blockchain networks. Subsequent buybacks are anticipated to unfold in phases as further assets are retrieved from cooperating platforms.
Recovery Strategy and Security Enhancements
As part of its recovery strategy, UXLINK plans to release between 8-12% of tokens from community, team, and treasury reserves that were initially locked under long-term vesting agreements. It’s important to note that this adjustment will not impact existing investor allocations and is strictly aimed at recovery efforts.
Post-incident, UXLINK has bolstered its security protocols by integrating hardware wallets, conducting quarterly red-team security assessments, and broadening its bug bounty programs. In a bid to enhance user protection, the platform has also introduced stratified onboarding processes and zero-knowledge verification. These advancements are all integral to UXLINK’s comprehensive strategy to not only restore functionality and security but also reinvigorate community engagement, which has already seen a dramatic increase in activity—up over five times in governance and social community interactions since the hack.
