The Drift Foundation has launched claims and redemptions for users affected by the protocol’s April 1 exploit, opening access to a recovery pool that currently holds about 3.11 million USDT. Under the rollout, eligible wallets can claim DFX recovery tokens tied to their verified losses and redeem them for a share of the pool.

The opening payout level is small relative to total losses. Drift says the initial redemption rate is about 0.0104 USDT per DFX token, which works out to roughly 1% of a claimant’s verified USDT-denominated loss at the time of launch.

How the recovery token works

Drift assigns one DFX token for each USDT of verified exploit losses. The amount paid on redemption is based on a simple formula: the USDT in the Recovery Pool divided by the outstanding DFX supply. Using the current pool balance, a user with a claim worth 1,000 USDT would initially receive about 10.40 USDT if redeemed immediately.

The foundation says redemption is final. When a holder redeems, the DFX is burned and the USDT payout is processed in the same transaction, so either both actions occur or neither does. Payouts are rounded down to the nearest 0.000001 USDT.

Because DFX is a standard Solana token, holders can also transfer it or trade it on Raydium. Drift notes that the published redemption rate governs direct recovery-pool payouts, while any sale on the secondary market would depend on the token’s trading price.

Claim rules and deadlines

For the initial claim, users must connect the wallet that controlled their Drift account on April 1, the date of the exploit. Drift also requires claimants to hold a small amount of SOL for network fees and to accept the DFX terms before approving the claim transaction.

The recovery methodology published in May says Drift recorded spot and perpetual positions when the protocol paused at 18:31:47 UTC on April 1. It used prices from 16:06 UTC, before the attack began, in order to avoid balances being valued at prices distorted during the incident.

After claiming, redemption does not have to come from the original address. According to Drift’s October instructions, any wallet holding DFX can redeem. The claim window remains open until 00:00 UTC on Jan. 1, 2028, when any unclaimed DFX will be permanently burned.

Where the recovery funding is meant to come from

Drift’s May recovery plan separated DFX from the protocol’s DRIFT governance token and set a cumulative funding target of 295,426,725.97 USDT. The plan said revenue contributions would end once inflows reached that figure, after which remaining tokens would be redeemable at full value or more.

A new funding schedule routes a share of daily net protocol revenue from Velocity into the recovery pool at 00:00 UTC. Drift says 60% of the first 30,000 USDT of daily net protocol revenue goes to the pool, 70% of revenue between 30,000 and 100,000 USDT, and 90% of revenue above 100,000 USDT, with each rate applied only within its own band.

Before that calculation, Velocity allocates 15% of net trading fees to its Insurance Fund and another 15% to trading capital, leaving 70% as net protocol revenue. Drift also says Tether has committed up to 127.5 million USDT for relaunch and user recovery, while strategic partners have committed up to 20 million USDT. Any assets recovered through freezes, bounties or law-enforcement action are also supposed to flow into the pool.

Effect of early redemptions and related updates

Drift has warned that redeeming early removes a holder’s claim on any future deposits into the pool. In the foundation’s example, if 10% of the total DFX supply is burned, each remaining token would be entitled to about 11% more of every later contribution.

The foundation separately said its Insurance Fund was not used to cover exploit losses because that fund is designed for trading-related bankruptcies. A July 7 update made Insurance Fund deposits available for withdrawal, and Drift’s October portal instructions state that those claims are handled separately from DFX.

The next confirmed milestone is the ongoing daily funding of the pool and the long claims window running through Jan. 1, 2028. Any increase in payouts from here depends on additional revenue contributions, partner support and any stolen assets that are successfully recovered.

Source: crypto.news