Key Highlights:
- 1inch DAO is voting on compensating October 2024 hack victims with $768,026 in USDC.
- Victims must provide KYC, law enforcement reports, and waive future claims.
- Vote is nearly split, with large holders dominating both sides.
New Proposal Seeks to Address Unresolved Exploit Losses
The 1inch Foundation has proposed reimbursing users affected by an October 2024 supply chain attack via the Lottie Player plugin, which compromised the platform. The suggested compensation of $768,026 in USDC would be sourced from the DAO treasury.
Under the proposal, affected users must complete identity verification, submit evidence, and file law enforcement reports. They must also sign agreements to forfeit future claims to any recovered assets.
Community Response Divided
As of now, the DAO vote is nearly split: 53.47% in favor versus 46.53% against. Just two major wallets dominate the vote — one on each side. Critics argue the DAO shouldn't function as an insurance fund, especially without consistent revenue.
The reimbursement proposal is distinct from the more recent $5 million breach in March 2025, which saw funds returned through negotiation. This marks the first official attempt to compensate October’s victims.
Implications for DeFi Governance
The vote, which remains open until June 22, reflects broader tensions in DeFi governance around user protection, decentralization, and the role of DAOs in risk management. If passed, it could set a precedent for how decentralized projects handle historical exploit losses.2
