The team has been hard at work in the immediate aftermath of the exploit to secure a substantial loan to construct a viable compensation mechanism.
In order to acquit our commitment to compensate the community, the team has secured a loan of approximately $8.5M (KRW 100B). The team has taken on this direct liability to be able to generate returns with which to compensate the community.
The team has allocated these funds to generate compensation through trading and farming activities managed by the team and by expert partners. The borrow interest rate has been negotiated at 10%. Our current APR is around 30% — rates can fluctuate, but we are targeting an annualized return of 20+% toward the compensation fund.
We will be able to distribute compensation amounts at regular intervals throughout the year, but will need to run our models for a few more weeks to be able to optimize the claim intervals and other parameters of the models. We additionally are seeking further financing and investment along with the current plan.
Thanks again for your patience. The team has taken on significant liability to meet its commitment to the community. Please stay tuned for further details as we refine our models.