Balancer DAO to Launch Compensation Program for Hack Victims, Plans to Distribute $8 Million in Recovered Assets

Balancer DAO is making a significant move. Following a major security incident on November 3rd that resulted in the loss of over $110 million, the organization has decided to return approximately $8 million worth of recovered funds to the affected liquidity providers.

**Composition and Handling of Recovered Assets**

Recovery efforts, carried out through collaboration between security teams and white-hat researchers, have successfully retrieved funds from multiple pool sources. Among these, approximately $19.7 million secured by StakeWise is managed separately, and the $4.1 million recovered through collaboration with Certora will be excluded from rewards allocated to white-hat researchers.

**Compensation Distribution Mechanism**

The compensation scheme proposed by the DAO consists of two main elements. First, it will implement a phased and structured reward distribution to white-hat teams, while simultaneously compensating general users for losses based on records at the snapshot point.

**Claim Procedures and Payment Methods**

Users eligible for compensation will be provided with a newly developed claim mechanism. Payments are expected to be executed in the tokens originally held, ensuring transparency and traceability of the process.

This compensation plan aims to restore trust in the Balancer DAO ecosystem and maintain confidence among liquidity providers.