Ethos Announces Recovery Token Program For Voyager Creditors And VGX Holders
November 03, 2022 2:41pm
Ethos has announced a recovery token program for the users affected by the Voyager collapse. Both VGX holders and creditors will be eligible to claim ETHOS tokens with proof of valid claim at www.ethos.io. While there are no guarantees, past recovery tokens have helped repair damage for victims. The losses have been exceedingly painful for many, and the Ethos founders are providing a ray of hope and a new path for the broader crypto industry.
The collapse of the Voyager platform has created substantial chaos in the broader crypto industry, impacting nearly 1 million customers with losses exceeding $600M USD. 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. These actions decimated the crypto holdings of thousands of users, including the founders building Ethos 2.0.
“Voyager joins a long list of centralized meltdowns such as Mt. Gox and Quadriga, losing customer funds in the process,” said Ethos co-founder Adam Lavine. “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.”
The Ethos team has unique experience building high-scale crypto platforms. Ethos and Voyager had a working relationship in the past. Voyager initially 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. Moreover, Ethos rebranded as Voyager once the entities merged in 2019. However, the initial Ethos team left the board in 2021 over differences in business vision, including the need to have more decentralized services, and Voyager ultimately filed for bankruptcy roughly 18 months later.
On the heels of Ethos 2.0 launch, the team will 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.
A total of 10% of the ETHOS token supply will be allocated towards VGX holders, based on a future blockchain snapshot. A similar amount will be distributed among Voyager creditors pro-rata if they provide proof of claim.
Creditors can register their claim with proof through the Ethos platform at www.ethos.io. For VGX holders a snapshot will be taken, and tokens will be distributed via the Ethos app. That process will give hope to the VGX community, who have been largely cast aside through the bankruptcy process.
Ethos 2.0 will be launched by a team of 8 former Ethos team members and world-class cryptography experts. It will serve as a decentralized and self-custody alternative to trading applications such Voyager with similar functionality. However, it also features:
- Universal Vaults which enable 7-dimensional crypto security including MPC technology to say goodbye to private keys and seed phrases.
- Magic Keys which uses sharding to backup keys with 5 simple “safe words”
- Live Trading which enables high volume, best execution trading direct from a Vault, eliminating the risk of centralized meltdown.
Ethos is a people-powered blockchain platform. The Ethos mission is to build decentralized financial services that are open, safe and fair for everybody. The Ethos team has a strong track record of creating billions in enterprise value through past crypto ventures. The next-generation Ethos platform is powered by unique Magic Key security including MPC technology to say goodbye to private keys and seed phrases.