Proposal To Unwind The Reissue Of STG

Today, the Stargate Foundation published a twitter thread outlining the history of the Alameda launch auction token repurchase and current updates to the legal situation surrounding it (https://twitter.com/StargateFinance/status/1634318020473659392).

Based on advisement from The Foundation, Stargate should cease its plans to reissue the STG token.

Stargate should continue to use the original STG token within the protocol, and the tokens Alameda purchased should remain in the vesting contract where they currently sit at the request of the liquidators as noted in the thread posted. Stargate would undertake a large cost to reissue the token, along with material risk around its outcome. All of this, was to try to help the safety of the tokens in question. This is now being challenged with the liquidators clearly not wanting them moved.

As the legal process plays out, it is hopeful the tokens will be returned to LayerZero Labs and passed onto the Stargate DAO as proposed, but nothing at this time is certain. What Stargate should do is ensure that the protocol is protected.

A fair number of exchanges have expressed support for the reissuance. The Foundation should work with those exchanges to resume support for the original STG token.