Huobi and Gala Games to Provide $50 Million in Compensation Plan for Damaged Users in pGALA Attack

On April 3rd, Huobi released an official announcement announcing that it had negotiated with Gala Games to complete a compensation plan for damaged users in the additional attack incident of pGALA, with a compensation amount of 50 million US dollars. According to the announcement, this compensation will be borne jointly by Huobi and Gala Games, and Huobi will provide $25 million in cash and equity equivalent to the damaged users as compensation, including: 15 million USD and 10 million equivalent equity compensation; Similarly, Gala Games will provide node compensation equivalent to US $25 million for damaged users, and the above compensation plan will be launched within this week.

Huobi has teamed up with Gala Games to compensate the users who suffered from the additional attack of pGALA

Introduction

On April 3rd, 2021, Huobi, a leading blockchain and cryptocurrency exchange, announced that it had reached a compensation plan with Gala Games following an additional attack incident on pGALA. The announcement detailed a compensation amount of $50 million which would be provided jointly by Huobi and Gala Games. This article will explore the details of the compensation plan and its significance for the cryptocurrency community.

What is pGALA?

Before delving into the compensation plan, it is important to understand what pGALA is. pGALA is the governance token of the Galagon game, a decentralized role-playing game built on the Ethereum blockchain. The game was created by Gala Games and launched in March 2021. The pGALA token was designed to enable governance within the game and provide incentives for players to participate.

The Additional Attack Incident

Unfortunately, on March 28th, 2021, pGALA was subject to an additional attack incident. During the incident, more than 1 million pGALA tokens were stolen from Galagon’s smart contract, causing significant losses to users who held the tokens.

The Compensation Plan

In light of the significant losses suffered by users in the attack, Huobi and Gala Games jointly decided to launch a compensation plan. According to the announcement, Huobi will provide $25 million in cash and equity compensation, while Gala Games will provide node compensation equivalent to US $25 million for damaged users.
Huobi’s compensation will include $15 million in cash and $10 million equivalent equity compensation, which will be distributed to the affected users. The equity compensation will represent an ownership interest in the platform equivalent to the user’s proportionate share of the total amount of compensation.
Gala Games’ compensation will be provided for by the node operators of its open source blockchain network. The node compensation will also be distributed to the affected users.
The announcement stated that the compensation plan will be launched within the week of the announcement, providing users with a swift resolution and helping to restore confidence in the cryptocurrency ecosystem.

Significance of the Compensation Plan

The swift response from Huobi and Gala Games in offering a compensation plan for the pGALA attack is significant for multiple reasons. Firstly, it demonstrates the responsibility of exchanges and blockchain platforms to provide adequate protection to users and services. Secondly, it highlights the importance of cooperation between exchanges and blockchain developers in providing swift and comprehensive solutions in case of similar incidents.
The compensation plan also highlights the importance of decentralization and governance tokens in the cryptocurrency world. Decentralized applications built on blockchain networks rely on governance tokens to incentivize users and enable decentralized decision-making. Ensuring the security and reliability of these tokens is critical for the entire ecosystem to thrive.

Conclusion

In conclusion, Huobi and Gala Games’ compensation plan for the pGALA attack stands out as a significant development in the cryptocurrency industry. The swift response of the parties involved and the comprehensive compensation plan will help restore confidence in the ecosystem and provide a framework for future similar incidents.

FAQs

1. What is the significance of governance tokens in cryptocurrency?
Governance tokens enable decentralized decision-making in blockchain applications and incentivize users to participate in their ecosystem.
2. What was the damage caused by the pGALA attack incident?
The pGALA attack incident caused significant losses to users who held the tokens. More than 1 million pGALA tokens were stolen from Galagon’s smart contract.
3. Why is cooperation between exchanges and blockchain developers important?
Cooperation between exchanges and blockchain developers is important as it enables swift and comprehensive solutions in case of similar incidents and highlights the shared responsibility of protecting users and services.