DRIFT token price jumped about 45% as the exchange’s vote on remaining borrow-lend assets nears its final stage.
The DRIFT governance token issued by the decentralized exchange Drift, a Solana network platform that suffered a hack in April, surged 45% over the last 24 hours as a governance vote regarding the protocol’s borrow-lend assets approaches completion.
According to CoinGecko data, DRIFT is trading at around $0.045 following a rise of almost 45% in a day, with its market cap rising back up to $27 million.
The price move came as Drift’s governance vote on DIP-10, a proposal titled Treatment of Remaining Asset in Borrow Lend, nears its May 28 deadline.
Under the proposal, all the remaining spot tokens in the borrow-lend pool would become stablecoins to create a reserve for the recovery pool following the hack that happened on Drift in April.
The proposal says the conversion is meant to create a clearer settlement value for recovery instead of leaving the pool exposed to changing token prices.
Read also: Solana-based Crypto Exchange Drift Suspends Withdrawals Amid $280M Hack
Questions Remain
As of press time, DIP-10 is leading with 54.7% support, while 45.3% had voted no. Participation stood at 24%, above the listed 2% quorum, though only 29 wallets had voted, while 1,489 had not.
But the unresolved issue remains distribution. Drift claims that converting the rest of its assets to USDT▼$0.9991 will make it easier for them to recover from their losses. Critics feel that it would socialize the losses on other users’ money as well.
Drift was hit by an April 1 exploit that drained roughly $285 million in user assets within about 12 minutes. Blockchain analytics firm TRM Labs said the attack was likely carried out by North Korean hackers and involved weeks of preparation.
The recovery plan also depends on outside support from Tether and other partners, but the full conditions of that funding remain unclear. Drift said in April that Tether could provide up to $127.5 million, while other partners could add up to $20 million, as part of a broader relaunch plan that moves Drift’s settlement layer from Circle’s USDC▲$0.9998 to Tether’s USDT.
The switch followed anger over Circle’s decision not to freeze stolen USDC during the exploit.
Read more: Hackers Breached 3,800 Internal GitHub Repositories. Should You Be Worried?
