Resupply Protocol Proposes Governance Plan to Address $10 Million Bad Debt

Resupply unveils a recovery strategy involving the destruction of $6 million in bad debt and gradual repayment of $1.13 million through future revenue, amid scrutiny over accountability.

Summary

Resupply has announced a recovery plan following a hack that resulted in $10 million in reUSD becoming bad debt. The proposal includes destroying $6 million of bad debt from the insurance pool, which holds $38.7 million in reUSD. The remaining $1.13 million will be gradually repaid by the DAO through future revenue sources. Resupply faces scrutiny for allegedly shifting losses to insurance pool depositors without proper accountability.

Terms & Concepts
  • ReUSD: A stablecoin used within the Resupply protocol, which is impacted by the proposed governance measures.
  • RSUP: The native token of the Resupply protocol, which will be allocated to users affected by the recent hack.