Stargate Finance Proposes STG Token Reissue

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Stargate Finance Proposes STG Token Reissue

Proposal to reissue tokens to prevent illegal sales

Cross-chain liquidity protocol Stargate Finance proposed to reissue all Stargate Tokens (STG) one day. It is against the backdrop of illegal outflow of funds from Alameda Research’s wallet, which went bankrupt as one of the FTX group companies.

Stargate’s DAO (Decentralized Autonomous Organization) can protect the interests of token holders by “eliminating the risk of unauthorized external transfers of STG tokens” from the compromised Alameda wallet. explained.

As a story, according to Stargate, Alameda Research purchased 10% of the total supply of STG tokens (100 million STG) in March 2022. Alameda Research has promised to lock up all of these tokens until March 2025.

However, suspicious external remittances have been observed from Alameda Research’s wallet, which has since gone bankrupt.

At the end of December 2010, it was revealed that tokens of multiple brands were sent to the outside. It has been pointed out that Ethereum (ETH) and multiple types of ERC20 tokens were sent, some of which were sent to mixing services, etc., and finally converted to Bitcoin. The four wallets hold a total of about 100 million yen ($800,000).

It is reported that US authorities will also launch an investigation into this suspicious remittance.

Relation: Disturbing fund transfer from Alameda, 100 million yen aggregated into Bitcoin?

Proposal details

StargateDAO said that the outflow of funds from the Alameda Research wallet could affect the STG token as follows:

A recent outbound transfer from Alameda’s wallet reveals that Alameda Research does not have full control over its wallet and that malicious actors and hackers are misappropriating Alameda Research’s funds. I made it.

The resulting damage to STG token holders and Stargate is not something to be taken lightly.

StargateDAO said there was a risk that hackers could illegally release STG tokens into the market by violating the three-year lockup agreement. If that happens, stablecoins could flow out of the liquidity (POL) owned by the Stargate protocol.

StargateDAO proposed to reissue STG tokens on March 15, 2023. The existing STG token will be invalidated and a new STG token will replace it. The user does not need to do anything in particular to replace it.

On March 15th, we will take a snapshot of all users’ balances, based on which new tokens will be sent to all users on a one-to-one basis. This reissue will prevent the 100 million STG held by Alameda from being stolen and sold to the market, adversely affecting Stargate.

He also explained that exchanges currently trading STG tokens will be required to suspend deposits and withdrawals for 24 hours. After the new tokens are issued, those exchanges will resume deposits and withdrawals corresponding to the new tokens.

What is a snapshot

About the date of vesting. Based on the “snapshot” that records the ownership status of all addresses at a certain point block height, the amount of token holders held is saved and rights are determined. After that, the new currency will be distributed according to the number of holdings of the corresponding issue.

▶Cryptocurrency Glossary

Increased adoption of Stargate Finance

Stargate Finance is a cross-chain bridge with a “unified liquidity pool” between different blockchains at its core. So far it has been integrated into PancakeSwap (DEX), Sushiswap (DEX), Bungee (bridge aggregator) and others.

In December 2022, it was newly integrated into the DeFi (decentralized finance) lending protocol “Atlantis Loans (ATL)”.

Relation: Adoption and further expansion of LayerZero bridge “Stargate”

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