TechFlow News: On May 6, Drift Protocol officially announced that, in response to the April 1 attack, all affected wallets will receive recovery tokens representing both their verified losses and proportional claims against the recovery pool—each recovery token corresponds to $1 of verified loss.
The recovery pool’s initial funding is approximately $3.8 million, sourced from converting the protocol’s remaining assets into USDT. Additional funds will be added subsequently via a portion of quarterly net revenues from exchanges, partner contributions, and up to $127.5 million in matching deployment from Tether. Once the recovery pool exceeds $5 million, users may begin redeeming recovery tokens; the redemption price will be calculated as the recovery fund’s value divided by the outstanding supply of recovery tokens.
Drift stated that the insurance fund was unaffected by the attack; any release of related funds requires governance proposals and DAO voting. The exchange plans to relaunch in Q2 2026, focusing on perpetual contracts and a select set of markets. It will also implement new programs and addresses, rotate cryptographic keys, rebuild the community multisig, remove durable nonces and the Earn product, and conduct operational security upgrades.
