Cypher, a Solana-based decentralized exchange, is planning to hold a token sale soon in order to recover from a hack earlier this month. According to contributors, the proceeds of the sale will be used to fund development and fill the project’s depleted treasury. The hack resulted in the loss of upwards of $1 million in various assets.
The expedited initial decentralized offering (IDO) plan will allow Cypher to attempt to plug the hole by issuing a debt token to investors who lost their deposits. They will be able to get their money back from the protocol as it grows. The tokenomics of the sale are tilted towards public investors, with 45% of tokens being sold to the public, 23% earmarked for the team, 11% for investors, 1.2% for advisors, 12% for growth incentive programs, and 7.3% for airdrops.
Cypher will also airdrop 50 million tokens to depositors who lost money to the hack, refunding them at a rate of 31 cents on the dollar. The protocol is still trying to get the hacked funds back from the attacker, and has managed to freeze $600,000 worth of crypto in centralized exchanges.