Web3 platform UXLINK faced an $11 million hack in September 2025, prompting a community vote on token unlock decisions for victim compensation and liquidity restoration.
The decision empowers users, illustrating a shift towards decentralized governance in crisis management, while seeking to maintain market stability and recompense victims effectively.
UXLINK, a Web3 social platform, engaged its community on a token unlock decision after suffering a major hack in September 2025.
The hack triggered an $11 million loss, prompting UXLINK to seek community input for a recovery plan, potentially influencing future governance mechanisms.
UXLINK Considers 8-12% Token Supply Unlock Post-Hack
In September 2025, UXLINK was hit by a major attack that resulted in a significant $11 million loss. The platform is now letting its community vote via Snapshot to determine the next steps.
The governance proposal, named "Phase 2 Swap & Compensation Plan," outlines a potential token unlock between 8–12% of supply. Should the vote pass, tokens will be held in a multi-signature vault for redemptions.
“If approved, the unlocked tokens won’t go into circulation immediately. They’ll be transferred into a multi-signature vault managed by several signers, creating a pool dedicated to compensating victims and processing redemptions.” — UXLINK Governance Team, Community Governance Oversight
Community Governance at Play in UXLINK Recovery Strategy
The hack has directly impacted UXLINK's market, leading to a push for recovery efforts. Community governance allows token holders to play an active role in determining compensation strategies.
Financially, the token unlock could restore liquidity, assist victims, and mitigate losses from the incident. However, investors' allocations will remain under existing vesting agreements, stabilizing market reactions.
DeFi Governance Deals With Hack Fallout
Comparatively, past smart contract exploits in the DeFi space have led to various recovery strategies. In several cases, governance and utility tokens faced significant vulnerabilities post-hack.
Future implications suggest DAO governance might become a new norm for decentralized decision-making. Historical trends reveal the importance of community involvement in tackling such crisis situations effectively.
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