Timeline
- 7.5
Drift Foundation: DFX is not pegged to 1 USDT, current recovery pool covers only about 1% of claims
The Drift Foundation clarified the compensation terms following the hack of its protocol: users receive 1 DFX token per 1 USDT lost, but the redemption amount depends on the recovery pool balance, which currently covers only about 1% of total claims. Tether has committed up to 127.5 million USDT to support the protocol restart and user repayment, with the funds matched to Velocity's net protocol revenue rather than paid out as a lump sum. The disclosure sets explicit expectations for affected users, confirming that DFX is not a 1:1 USDT claim and that the current pool covers only a small fraction of losses, while Tether's backstop depends on a future revenue stream rather than an immediate cash injection. The total DFX supply is 299,500,810.998, fixed at one DFX per verified USDT of loss with no further minting, and the redemption amount equals the recovery pool balance divided by outstanding supply. The claim deadline is January 1, 2028; users can hold DFX or trade it on secondary markets such as Raydium, and the only official link is dfx.drift.trade.
- 8.0
Drift Foundation Launches DFX Claims and Redemption, 1 DFX Per 1 USDT of Loss
Drift Foundation announced on October 2 that DFX claims and redemption are live, allowing users with verified losses from the April 1 incident to claim 1 DFX for every 1 USDT of loss. Each DFX carries a claim on a Recovery Pool that currently holds roughly 3.11 million USDT. The launch turns the April 1 losses into a tradable, pool-backed claim structure, giving verified victims a defined redemption path rather than an open-ended recovery promise. The pool's size relative to total losses means the redemption amount per DFX depends on how much is ultimately recovered and committed. DFX is redeemable for USDT at a Redemption Amount calculated as the Recovery Pool balance divided by DFX outstanding supply; redeemed DFX is burned and the transaction is irreversible. The Recovery Pool is funded by a daily share of Velocity's protocol net revenue, up to 127.5 million USDT in matching funds from Tether, up to 20 million USDT from strategic partners, and assets recovered later; the claims window closes at 00:00 UTC on January 1, 2028, after which unclaimed DFX is burned.