Hector Network Votes to Liquidate Treasury and Distribute Proceeds
The Hector Network, a Fantom-based project, has voted to liquidate its $16 million treasury and distribute the proceeds to HEC tokenholders. This decision comes after the project suffered major losses due to the collapse of bridge provider Multichain. The process of winding down and redeeming HEC tokens will take six to 12 months.
Key Points:
– Hector’s HEC token has lost 60% of its value since July 6.
– The treasury may have suffered an $8 million loss due to Multichain-linked stablecoins losing their pegs.
– Tokenholders were given the option to liquidate or migrate to a different blockchain, and they rejected the migration plan.
– The proceeds of the treasury will be distributed to HEC holders proportionally and based on their positions as of July 14.
– The redemption is seen as a victory for activist investors who have demanded the return of the treasury to token holders.
It remains unclear how the liquidation and redemption program will be conducted, as well as how unclaimed assets will be handled. The leadership of Hector Network has not provided any comments on the matter.
Hot Take
The vote to liquidate the treasury and distribute the proceeds is a significant step for Hector Network, but it may not fully address the damage suffered by the project. With the loss of value in HEC tokens and the collapse of Multichain, the redemption process may not result in the full $16 million being distributed to token holders. This highlights the challenges faced by blockchain projects and the importance of managing funds and partnerships effectively. It also serves as a reminder to investors to carefully consider the risks involved in the crypto space.
By
By
By
By
By
By