After suffering from an exploit that saw 15m BOG minted in seconds and $3m in liquidity drained, the BOG team have been working round the clock to fix the issue and find a suitable compromise that will help regain the trust of its hodlers while keeping new users happy.
Despite initial promises of having a solution ready in 24–48 hours, the BOG team are only ready to deploy a fix a full week after the exploit. This however, is looked upon favorably by most as it highlights how the BOG team is taking security far more seriously and ensuring history does not repeat itself.
Having previously covered the BOG hack here, this article will instead focus on the details of the solution that the BOG team have come up with and what you need to do before the airdrop.
New BOG contract
As I touched on in the previous article, the BOG team could not afford to let things continue with 15m “illegitimate” BOG in circulation. This was made doubly difficult as regular, innocent farmers who staked the BOG LP token also had varying amounts of these illegitimate BOG appear in their wallet as a result of the exploit.
Therefore, the first order of business was to remove the validity of these BOG tokens by launching a new BOG token and contract. For the sake of this article, I’ll refer to the new BOG token being launched as BOGV2. Any existing BOG tokens are now worthless and if you still hold any, feel free to sell them off as they no longer serve any purpose.
Airdrop BOGV2 and LP tokens
Once the contract is launched, the new BOGV2 will be airdropped to anyone who held BOG in their wallet at the time of the snapshot. This distribution will be 1:1, meaning that you should receive the same amount of BOGV2 as BOG tokens you held during the snapshot.
Unfortunately for the older investors, this means that the dollar value of their holdings will be severely diluted, as new investors who bought post exploit but pre snapshot managed to purchase BOG for fractions of what an original investor would have paid. The current projection released by the BOG team estimates that older investors will lose 3x–3.5x of their holdings.
It’s worth noting that the LP tokens will work slightly differently. Farmers will receive just under 2x the number of LP tokens they had staked at the time of the snapshot. Due to the dilution in supply, these new LP tokens should work out to have the exact dollar value as the LP tokens pre exploit.
Pacifying old investors while honoring new ones
The fact of the matter is that there’s just no one-size-fits-all solution to keep both camps happy. While it’s “unfair” that new investors managed to purchase their BOG at such low prices, these new investors simply didn’t know any better and were just capitalizing on a dip to invest into a good project. They bought their BOG legitimately from the market and shouldn’t be punished for it. Instead, the true bad apples are the ones who sold their illegitimate BOG tokens for a hefty profit immediately after the hack.
With all of that in mind, the BOG team plans to address the imbalance via a solo staking pool. This functionality will only be open to old investors for the time being but will be rolled out for everyone “as soon as the supply dilution has been mitigated”, though it’s not been clear how this will be determined.
Bad apples who sold their BOG post exploit pre snapshot will also see their BOGV2 airdrop amount reduced. This gives original holders who didn’t dump their BOG some measure of justice for doing the right thing, albeit a small one since the profits the bad apples made off with far outweigh the cost of repurchasing a similar number of BOGV2.
Transaction fees & Reducing supply
Upon launch, BOGV2 will have a circulating supply of 13.3M BOGV2, roughly 4x the supply pre exploit. In a bid to reduce available BOGV2 in the market, the BOG team have introduced a new 5% transaction fee that will be imposed on any trade of BOGV2. Proceeds from the fee will be used to support the solo stake pool and all current LP stakers.
It’s worth highlighting here that the BOG team have made it clear that this fee will NOT be imposed on wallet to wallet transfers of BOGV2 or when paying for any BOG services.
To further reduce supply,
- 1530 BNB will be paired with 221K BOG and injected into the liquidity as LP tokens. The yield earned from these LP tokens will be burnt, slowly reducing supply.
- The BOG team will buy back 109 BNB worth of BOGV2 and burn it all every day for 2 weeks after the launch.
What you need to do right now
If you previously held or were staking BOG, head on over to Bogged.Finance and enter your BSC wallet address to check how much of the airdrop you’ll qualify for.
At 9PM UTC on the 31st of May 2021, the airdrop will be available on the Bogged.Finance website. You’ll be able to claim your BOGV2 and LP tokens, then stake them immediately on the website in preparation for launch at 9pm UTC on the 1st of June 2021.
While the airdrop claim will be available indefinitely just in case you’re unavailable during those 2 days, it’s recommended that you collect your claims and stake them to avoid losing out on the potential earnings from the farm and solo staking pool.
As an original investor, I’d be lying if I didn’t envy those who bought post exploit. With the new price at 145 BOGV2 per BNB, anyone who “aped in” when BOG was priced at $1 is in for some hefty profits.
However, I do want to make clear that I applaud the BOG team for achieving what they have in this short amount of time. Many of the old investors aren’t going to be happy, but we do understand that this solution was just the lesser of two evils and necessary in order to move forward. Time will tell if the solo staking pool will be able to reimburse those who’ve supported BOG since its inception.
Good luck BOG team, I do hope this succeeds.