Huobi Global will set a tax burn mechanism for pGALA, with the tax used for repurchasing and destroying pGALA
ChainCatcher news, Huobi Global announced a notice regarding the pGALA tax burning mechanism on the BNB Chain, stating the following adjustments to maximize the protection of user asset security:
The platform will close pGALA deposits;
A tax burning mechanism will be set up, adjusting the pGALA spot trading fee to a bidirectional charge of 0.012 (1.2%), while other tax mechanisms within the platform will remain unaffected;
All fee income will be used to repurchase and destroy pGALA, and the tax burning mechanism is expected to go live on November 5, 2022, at 0:00;
All improper gains from the issuance of BNB Chain GALA tokens through deposits will be used to repurchase and destroy pGALA, and all trading fee income from GALA trading pairs on the platform from 0:00 to 24:00 on November 4 will be used to repurchase and destroy pGALA;
Huobi will continue to negotiate with the project on behalf of users regarding compensation for asset losses caused by this incident.
Previously, it was reported that the multi-chain routing protocol pNetwork caused the minting of over $1 billion worth of pGALA tokens on the BNB Chain due to a cross-chain bridge configuration error, profiting by selling on PancakeSwap. After proposing to rename the GALA bought during the abnormal event to pGALA and the project party agreeing to fully compensate users holding tokens before the incident, Huobi announced that GALA would be relisted. (source link)
