Survey 101: Creating a Convenience Class for Remediation?

Convenience Class Survey

Q: Should the Radiant DAO establish a Convenience Class for net deposits, ranging from 10 to a maximum of 1,000 USD?

Key Terms

Convenience Class: A Convenience Class refers to a group of users with smaller deposits that are bundled together into a single class for administrative efficiency during the recovery process. This grouping simplifies the handling of these deposits by streamlining distribution processes, as individual smaller funds may otherwise complicate proceedings. Users in the Convenience Class typically receive expedited or simplified payments, though often at a reduced percentage (haircut) compared to larger depositors.

Haircut: A Haircut refers to a reduction in the value of funds that users agree to accept as part of a recovery plan. This typically means users receive less than the full amount, allowing the Radiant DAO to reduce its financial burden and improve its chances of recovery. The “haircut” represents the portion of the deposits that is forgiven or written off.

Rationale

Introducing a Convenience Class benefits both users and the Radiant DAO. The class can also streamline administrative processes, reducing the burden of managing numerous small deposits individually, which can otherwise be time-consuming and complex. This class also addresses potential gas inefficiencies, as claim contracts may be gas-inefficient for small amounts, making it more costly for small depositors to process funds individually. Smaller depositors might also be less likely to monitor the recovery process over a long period of time, which could lead to missed opportunities for participation or claiming.

For the Radiant DAO, implementing this class helps ensure that smaller deposits are handled more efficiently, improving overall operational and smart contract scalability. Additionally, by offering this convenience, the DAO can potentially improve user retention, as participants are more likely to stay engaged when they feel their smaller investments are recognized and valued.

For around 2% of the total hacked amount, the Radiant DAO could reimburse between 90%(Arbitrum) and 98%(BNB Chain) of wallet addresses, as the majority of users fall within the $10–$1,000 deposit range.

  • Arbitrum: 12,705 addresses with $10 - $1,000 lost deposits. Along with 258,103 wallets with dust ($0 - $10), the convenience class would represent 89.67% of the total number of deposit victims on Arbitrum. Users above $1,000 represent 10.33% of the deposit victims.

  • BNB Chain: 14,865 addresses with $10 - $1,000 lost deposits. Along with 62,659 wallets with dust ($0 - $10), the convenience class would represent 97.73% of the total number of deposit victims on BNB Chain . Users above $1,000 represent 2.27% of the deposit victims.

Implementation

Users who are eligible for the convenience class will receive their funds through a one-time airdrop rather than through long-term claim contracts (RFP-47).

The Convenience Class would not guarantee an instant payout; rather, it means that this user group would be prioritized for payout, most likely in multiple waves.

Users with deposits above $1,000 would have the option to “opt down” into the Convenience Class, adjusting their net deposits to $1,000. (For example, if you have $1,100 in net deposits, it could be beneficial.)


Q: Should the Radiant DAO establish a Convenience Class for net deposits ranging from 10 USD to a maximum of 1,000 USD?

Please select one (1) option

Poll lasts 14 calendar days and ends February 22, 2025 12:00:00 UTC.

  • (A) Yes, but with a 30% haircut: All users with net deposits ranging from $10 to $1,000 will have their deposits converted to USD and assigned to the convenience class. This user group will be prioritized for payouts but will receive a 30% discount.
  • (B) Yes, but with a 40% haircut: All users with net deposits ranging from $10 to $1,000 will have their deposits converted to USD and assigned to the convenience class. This user group will be prioritized for payouts but will receive a 40% discount.
  • (C) Yes, but with a 50% haircut: All users with net deposits ranging from $10 to $1,000 will have their deposits converted to USD and assigned to the convenience class. This user group will be prioritized for payouts but will receive a 50% discount.
  • (D) There should not be a convenience class: The Radiant DAO should refrain from implementing a convenience class. All users, regardless of their net deposits, should be included in the claim contracts (RFP-47).
0 voters

Survey Evaluation: All YES votes (A/B/C) will be combined, and if they outnumber the NO votes (D), the YES option with the highest number of votes will be declared the final decision.

Disclaimer: This is a survey to gauge community support for the idea, and not a binding DAO decision. If it passes for option A, B, or C, whichever with the most YES votes will inform a follow-on RFP to seek a DAO decision to address to create a Convenience Class for remediation. If this survey passes and the follow-on RFP is ratified, users eligible for the Convenience Class will be removed from the RFP-47 Claim Contracts. However, if this Convenience Class survey vote fails (option D), all depositors will remain in the RFP-47 Claim Contracts as originally planned.