Kujira’s Recovery Plan: Debt Repayment and Future Changes

The plan involves several critical steps designed to stabilize the platform and position it for future growth.

First, the recovery plan focuses on repaying the operational debt through two distinct PILOT sales. The first sale is targeted at clearing the $USDC debt, while the second will address the $USK debt. This dual approach will not only resolve the existing liabilities. Also, it helps in converting the BOW leverage liquidity positions into protocol-owned liquidity, enhancing the platform’s financial stability.

Steps to Resolve Debt and Improve Stability

Another significant aspect of this recovery strategy is the opportunity it provides for community members. The PILOT sales will accept bids in both $USDC or $xUSDC for the first sale, and $USK or $xUSK for the second sale. This setup allows participants with funds locked in the GHOST lend vaults to use their xAssets to bid, making the process more inclusive and providing broader engagement opportunities.

Source: X

Bidders will be vying for $rKUJI (recovery KUJI) tokens through the PILOT sales. These $rKUJI tokens will be redeemable 1:1 for $KUJI once the necessary balance is freed from collateral and undelegated. This mechanism is designed to ensure that participants who contribute to the recovery effort are compensated with tokens that will have future value as the platform stabilizes.

Details regarding the specific terms of the PILOT sales, including the cliff, vesting schedules, base price, and maximum discount, are still being finalized. The Kujira team has committed to providing further information on these aspects and the overall timing of the recovery process shortly. Here are more info about the recovery plan:

Source: X

Additionally, the recovery plan includes significant structural changes within Kujira. These changes will necessitate further discussions and votes from the community. To manage the treasury and ensure transparency, a trusted committee—separate from the founding team—will be established. This committee will likely employ DA0 DA0 tooling for multisig wallets and other essential features to enhance governance and security.

Disclaimer

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