**The information contained in this blog post is correct as of 3rd June 2022, but may be subject to change. As new information comes to light from TFL (Terraform Labs) or other industry sources, updates may be released that change elements of this process. Some changes may be subject to a community vote. Please contact our team on Telegram or Discord for further clarification on any questions. Community feedback will enable us to improve this guide.**
Our team has produced the following Stakers’ Compensation Proposal after the UST De-Peg incident that was triggered on the 13th May 2022.
This Compensation Proposal will become active following a vote by the community to accept the recent UST De-Peg Claims.
The proposal includes:
- Details on the UST De-Peg Incident
- Proposed Compensation
- Proposed Timeline
- Additional Compensation
- On-chain Execution Details
- Future Risk Mitigation Improvements and Strategies
The Compensation Proposal aims to reduce the losses incurred by stakers down to 10% from this UST De-Peg payout over the course of the next 12 months or less.
A fixed sum will be paid into an on-chain pool from which stakers can withdraw their compensation over the 12 months.
If stakers withdraw their stake, their compensation will stop.
The compensation is to allow stakers to earn back some of their losses, whilst helping to maintain liquidity in the InsurAce protocol.
The fixed sum will be paid using existing premiums, revenues from future premiums, and some vested INSUR.
The vote will take place on the 6th of June. Please follow the voting guidelines in this blog post.
