Alpha Community’s Decision On Next Step Towards Getting Users’ Funds Back from Iron Bank #3

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Based on Iron Bank’s (IB) response to the 6th Open Letter, IB did not pick any solution. This means the default way forward (“Original Plan B”) would be to stop negotiating and move forward with the understanding that IB does not cooperate.

In this path, Alpha will stop negotiating with IB on behalf of depositors and set up a separate fund as a goodwill gesture for depositors since funds are stuck in IB. IB will have 120 hours, from when the Original Plan B is chosen as a next step, to unfreeze the depositors’ funds before Alpha and users work together to take legal action against IB.

After getting all the feedback from depositors, we understand that depositors are split between these 2 ways forward.

• Path 1
  • Many depositors suggest we move forward with the Original Plan B.
• Path 2
  • Many depositors suggest we negotiate one last time with a new solution that they propose. If IB does not accept the new solution, the way forward is to go with the Original Plan B.
  • The solution that depositors suggesting Path 2 are proposing is for Alpha to help facilitate the swap of 63M ALPHA (the collateral) and 4M USDC. IB receives 4M USDC and releases 100% of the USDC market. Though Alpha and IB’s ties would end as ALPHA collateral is used, Alpha will set up a separate fund as a goodwill for ETH, USDT, and DAI depositors.
  • If Path 2 is voted for by depositors but IB does not accept, then the way forward is to go with the Original Plan B.

These 2 ways are up for depositors to vote. The vote will be opened for 48 hours.