TechFlow news, on June 29, the Resupply protocol's official team initiated a remediation proposal in the community to address the $10 million ReUSD bad debt incident that occurred earlier this week. The proposal outlines a set of governance actions aimed at eliminating the protocol's bad debt and offering retention incentives for affected users.
Phase one measures include burning 6,000,000 ReUSD of bad debt from the insurance pool—representing 15.5% of the 38.7 million reUSD held in the pool—and repaying the remaining $1,131,168 in bad debt through a mix of future revenue sources. Additionally, the proposal includes shortening the voting period to accelerate decision-making and introducing an IP retention program for insurance pool depositors, incentivizing them to remain in the pool with additional RSUP tokens.
