Ethos has launched its recovery token program for users affected by the collapse of the Voyager lending platform.
Ethos has announced the launch of its recovery token program designed for the users affected by the Voyager collapse.
According to the company, both VGX holders and creditors will be eligible to claim ETHOS tokens with proof of valid claim via their official website.
The team added that while there are no guarantees, Ethos’s past recovery tokens have been instrumental in repairing damage for victims. Ethos founders say they are focused on providing a ray of hope and a new path for victims and the broader cryptocurrency industry.
Voyager Digital’s collapse a few months ago led to massive chaos in the broader crypto industry, with more than a million users affected. The users lost over $600 million following the collapse of the Voyager platform.
Despite its popularity, the platform ran into the ground due to questionable business decisions, including lending customer funds to 3 Arrows Capital through an unsecured loan.
While commenting on this latest development, Ethos co-founder Adam Lavine said;
“Voyager joins a long list of centralized meltdowns, such as Mt. Gox and Quadriga, losing customer funds in the process. We’re building a next-generation decentralized finance platform, and giving out free tokens to encourage users to take control of their own crypto funds.”
Ethos revealed it had a working relationship with Voyager in the past as Voyager leveraged Ethos’ technology for years to onboard new users and to take care of their crypto assets, processing over $5 billion through Ethos crypto rails.
Furthermore, Ethos rebranded as Voyager following a merger in 2019. However, the original Ethos team left in 2021 over differences in business vision.
Ethos said its team would extend a recovery token program for free to users affected by Voyager’s bankruptcy. Eligible users can claim ETHOS tokens, which is a utility asset across the Ethos self-custody platform, the team added.
Finally, a total of 10% of the ETHOS token supply will be allocated towards VGX holders, based on a future blockchain snapshot. Another 10% will be distributed among Voyager creditors pro-rata if they provide proof of claim.
Ethos 2.0 will be launched by a team of 8 former Ethos team members and world-class cryptography experts. According to the team, Ethos 2.0 will serve as a decentralised and self-custody alternative to trading applications.
Ethos is a people-powered blockchain platform. The Ethos mission is to build decentralised financial services that are open, safe and fair for everybody.