Polyhedra’s Phoenix Revival Program: Rewarding long-term ZKJ stakers post-liquidity attack
In a recent turn of events, ZKJ token holders faced a devastating blow as $500 million evaporated in minutes during a coordinated liquidity attack on June 15. However, Polyhedra has now launched its Phoenix Revival Program to reward the survivors of this catastrophic event.
The Phoenix Revival Program is specifically designed to target stakeholders who held onto their ZKJ tokens through the 90% crash. These resilient individuals will be offered early access to ecosystem airdrops and zero-knowledge infrastructure rewards as part of the program.
According to an announcement from Polyhedra, the program is aimed at users who staked ZKJ tokens on-chain via Ethereum or Binance Smart Chain before 13:00 UTC on June 15. Eligibility and reward allocation will be determined based on each user’s staking power at that exact moment, emphasizing loyalty and long-term participation over short-term speculation.
Participants in the program will also gain access to incentives tied to future Polyhedra products and whitelist placement for upcoming ecosystem airdrops. These benefits will be integrated into multiple ongoing and future product rollouts, including ZKML, a zero-knowledge and AI hybrid verification tool, a zkSNARK-based privacy stablecoin, the zero-knowledge decentralized exchange “Dark Pool,” and EXPchain, a zk-native Layer-1 blockchain with cross-chain functionality.
However, the community’s response to Polyhedra’s Phoenix Revival Program has been mixed, with many investors expressing disappointment and frustration. The program’s lack of mention of a promised buyback commitment from the project’s leadership has fueled backlash, with some viewing it as a betrayal of trust.
Instead of directly addressing the financial losses incurred by token holders during the crash, which saw ZKJ’s market value plummet by over 90%, the team’s recovery plan focuses on future access to new product features and airdrops. This forward-looking approach has left many stakeholders feeling abandoned and overlooked, as they grapple with significant losses.
As of the latest market data, ZKJ is trading at $0.1962, representing an 82.65% decline over the past year and a staggering 94% drop from its peak in March 2024. Despite Polyhedra’s efforts to revive the token’s value through the Phoenix Revival Program, doubts remain among community members about the project’s future prospects.
The collapse of the ZKJ token on June 15 was triggered by a liquidity drain that saw the token’s price plummet from $2 to below $0.35 in a matter of hours. A series of large liquidity withdrawals and sell-offs, coupled with significant long position liquidations on Bybit, contributed to the crash.
In response, Polyhedra injected $30 million worth of stablecoins into its DEX pools and announced a temporary buyback to stabilize the market. However, suspicions arose when on-chain researchers uncovered potential links between wallets associated with the project and the liquidity drain.
Despite denying direct involvement, Polyhedra’s reputation took a hit, with the community questioning the team’s integrity and accountability. The launch of the Phoenix Revival Program is seen as an attempt to regain trust and reward long-term stakers, but its effectiveness remains to be seen in the eyes of disillusioned investors.
In conclusion, Polyhedra’s Phoenix Revival Program represents a step towards rebuilding trust and incentivizing long-term engagement within the ZKJ community. However, the road to recovery will be challenging, as stakeholders grapple with the aftermath of the liquidity attack and navigate uncertain market conditions. Only time will tell if Polyhedra’s efforts are enough to revive the token’s value and restore confidence among investors.