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Ethos (ETHOS/USD) has launched a recovery token program for users affected by the recent Voyager Digital collapse. The program will enable VGX holders and creditors to claim ETHOS tokens using proof of valid claim on Ethos’ website.
While the recovery plan is not a guarantee, past recovery tokens have helped repair damages caused by similar collapses. The Ethos recovery plan offers a ray of hope for the broader crypto industry.
Impact of Voyager’s collapse
The collapse of Voyager Digital which was triggered by a number of factors including lending funds to the liquidated Three Arrows Capital in an unsecured loan has caused substantial chaos in the broader crypto space. The collapse impacted about 1 million customers with losses of more than $600 million.
Some of those impacted by the collapse included the founders of Ethos 2.0. Ethos and Voyager had a working relationship where Voyager leveraged Ethos’ technology for years to onboard new users and manage their crypto holdings. Voyager processed more than $5 billion through Ethos crypto rails.
The two entities (Voyager and Ethos) merged in 2019 and Ethos rebranded to Voyager. But the initial Ethos team left the board in 2021 after differences in business vision including a push for more decentralized services. Voyager filed for bankruptcy 18 months later. After intrigues following its bankruptcy filing, a US court finally approved the planned sale of the crypto lender assets to FTX US.
The Ethos Recovery Token Program
The Ethos recovery token program comes right on the heels of the Ethos 2.0 launch and it is targeted towards users affected by Voyager’s collapse.
Eligible users can claim ETHOS tokens, utility tokens within the Ethos ecosystem. A total of 10% of the ETHOS token supply will be allocated to the VGX holders. A similar amount will be distributed among Voyager creditors if they provide proof of claim.
VGX will require to submit a snapshot via the Ethos app while Voyager creditors should register a claim with proof through the Ethos platform.
Ethos’ main objective is to build decentralized financial services that are open, safe, and fair for everyone.
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