BlockBeats News, May 6th, Drift Protocol announced a recovery plan for users affected by the April 1st hack: each affected wallet will receive "recovery tokens," with each token representing $1 of verified loss, serving as a pro-rata claim on the recovery pool. The recovery pool was initially seeded with approximately $3.8 million USDT converted from remaining protocol assets, and will see continued growth through a significant portion of platform net revenues, additional contributions from partners, and up to $127.5 million in matching deployment from Tether. The insurance fund, unaffected by the hack, will have its usage for user compensation or pool injection determined through governance proposals and DAO voting.

Redemption Mechanism: Redemption will be enabled once the recovery pool exceeds $5 million. Redemption price = Total Recovery Fund Value ÷ Total unredeemed Recovery Tokens. Users can redeem at any time, but early redemption forfeits the remaining claim; those opting to wait can benefit from a higher proportional compensation as the pool grows.

The official statement emphasizes that this is not an immediate full refund, but rather a method for users to share in the protocol's future growth. Drift plans to relaunch in Q2 2026 with a new process, new addresses, and key rotations, focusing on perpetual contracts and curated markets. All major decisions will be subject to DAO voting.