#a16zcsx Community Insights & Market Sentiment

Just saw Reflect @reflectmoney release a payout plan for this shitty project. If you had money stored before, go take a look.

Right now, the options offered to affected users are:
▫️ Get back 0.2 USDC for every 1 USDC+ equivalent
▫️ Or add 80 RC tokens that the official has already explicitly stated have “no monetary value, non-transferable, no promise of future rights or benefits”

Then comes the key point: users will permanently transfer their future claims/recovery rights against Drift/Velocity to Palindrome Engineering.

In other words, if you take 20% cash now and future recovery ends up exceeding 20%, then the money you would have gotten has nothing to do with you—it’s all his.

To be precise, this isn’t a compensation plan provided by the project team at all; it’s an unreasonable discounted debt-claim harvesting.

Forget the 80% discount for a moment. The real issue is that the extra RC is already sealed off on the official side with a clear value boundary, yet the project team is still using it as part of the “compensation” in their proposal.

Also, the portal’s calculation for the “affected amount” has reportedly led to confusion: users say they admitted losses of around $200, while the page only shows $2.

So exactly how much have users lost in your end—how should that be calculated? And why can related parties to the project take away the future recovery upside at a 20% price? All these questions need to be clearly addressed.

@0xNIC0 @stablecoinjesus @arifkazi_ Please answer directly:
1. Why should RC be included in the narrative of the plan?
2. What is the calculation basis/method for eligible amount?
3. How are Palindrome and Reflect’s interests isolated/separated?
4. If future recovery is significantly higher than 20%, why can’t the original users participate in it again?

This set of terms seriously takes advantage of the affected users’ liquidity anxiety, and then uses a very low, high-certainty cash buyout to purchase a relatively more likely chance of recovering.

Affected users should first verify the principal/base, and then decide whether to sign. Absolutely don’t treat each 80 RC as an expected gain—in financial terms, it’s only equivalent to a discounted debt-claim purchase at a two-tenths rate.

You should also question @a16zcrypto and @elliefarrisi: is this really how the project you invested in treats users?

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