CHIP-4 Funding a 'Fighting Fund'

Dear Tokenholders,

Further to the Receivers’ recent update dated 10 July 2024, the Receivers seek Tokenholders’ input in respect of the level of funding to be retained to further their investigations into the various hacks and the alleged mismanagement of Hector DAO.

Accordingly, and based on consultation with the Tokenholder working group, the Receivers propose to Tokenholders the following four options of funding to be retained as a “fighting fund”, which can be voted on via Snapshot:

US $0.00 US $100,000; US $500,000; US $1,000,000.

The proposed funding will cover all costs associated with progressing the investigations, including Receivers fees, legal fees and third-party service providers.

Please review Section 3 and 4 of the Update which provides detailed information to make your decision.

In the event the Receivers decide not to proceed with further action, then any funds set aside but not used will be distributed to Tokenholders (i.e. just because Tokenholders decide to reserve a certain amount for recovery action does not mean it will all be used unless the Receivers consider there is a reasonable and proportionate prospect of returns).

The vote is prepared based on the information available to the Receivers at the time of the vote. The outcome of the vote is not binding on Hector DAO, the Receivers, or the BVI Court. The vote is a way of organising and facilitating consultation with the Hector community and the results will be taken into account accordingly, but the ultimate decision rests with the Receivers and the BVI Court.