DeFi

Can Galxe's 110% Recovery Plan Establish a New Industry Benchmark?

The Web3 credentials platform has taken a unique approach to compensate affected users following the recent security breach.

Summary

  • Recent security breaches in high-profile Web3 platforms highlight the need for improved security measures and user awareness in the sector.
  • Galxe, a Web3 credential data network, recently suffered a DNS hijack attack, resulting in an estimated loss of $270,000 for 1,120 users.
  • Galxe's unique 110% recovery plan, which compensates users for their losses, could set a new standard in addressing security incidents and promote trust and accountability in the Web3 space.

Recently, a number of high-profile Web3 platforms have experienced security breaches, including crypto exchange Coinex and online casino platform Stake, underscoring the pressing need for robust security measures and vigilant user awareness in the sector. 

On October 6, Galxe, a Web3 credential data network, suffered a security breach in the form of a DNS hijack attack. The platform’s domain and front end were compromised, redirecting users to a malicious phishing site with the intent to steal funds. According to the team’s statement, losses were estimated to the tune of $270,000, with about 1,120 users affected.

The incident occurred as a result of Dynadot, the platform’s domain service provider resetting Galxe’s account information and granting permission to an impersonator who bypassed the security process with fake documentation. 

Galxe is repaying users 110%

Galxe, who were swift to apologize to its users and recover their domain has taken a unique approach to compensate users for any losses they incurred during the recent security breach. In a statement on October 10, the team unveiled a comprehensive recovery plan, offering users an additional 10% on their losses which will be taken from the company’s treasury. 

“We want to express our deepest gratitude to those who are standing by us during this difficult time,” said Galxe.

According to the statement, the original user wallet addresses will automatically receive reimbursement in USDT (on Polygon) on October 16, with the value calculated as of 10:00 am UTC on October 9. However, users who prefer an alternative wallet address for funding will have the option to provide a new one.

Galxe is building a protocol that powers on-chain credentials, seamlessly integrating plug-and-play NFT modules. The decentralized infrastructure allows users to create, distribute, and gamify NFTs with customized on-chain data. Developers can build unique loyalty programs while individuals can issue and claim the NFTs backed by their on-chain achievements.

Is Galxe Setting a New Standard?

Galxe's response to the recent security breach demonstrates not only their commitment to their users but also their innovative approach to making users whole. By offering a unique 110% recovery plan, could the platform be signaling a possible shift in how Web3 platforms address security incidents? Their proactive stance can serve as a guiding light, steering the industry forward towards a more secure and user-centric future. If Galxe's model gains wider acceptance, it could pave the way for a new era of trust and accountability in the Web3 space.

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