Migrating SOUL & KCAL on Ethereum and BSC

Throughout the time that has passed since the April 2nd incident on Binance Smart Chain, Phantasma has seen a massive outpouring of support from both the community and our partners. Seeing the immense level of trust in both the integrity of the team and the ability to execute and overcome challenges has been a truly humbling experience for us all.

As our ecosystem growth arm has been hard at work finalizing multiple partnerships and dApp integrations, a dedicated group of team members have been working non-stop in parallel to finalize the migration to new token contracts on Ethereum and Binance Smart Chain.

Swift action taken to mitigate the incident combined with transparent communication and frequent progress updates have been key parts of the strategy employed to grow and strengthen the bonds with our community.

We have now arrived at the final phase of the mitigation – migrating assets to the new token smart contracts for SOUL and KCAL on both Ethereum and Binance Smart Chain.

In the following we will present in detail the different categories of wallets that can claim assets on the new contracts, as well as the rules that apply to the migration. First however, a brief summary. .

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TL;DR – What happened?

During the incident on Saturday April 2nd 2022 the following events took place on Ethereum and Binance Smart Chain:

  • An attacker was able to mint <1% additional supply of SOUL and >1*10^9x the supply of KCAL on BSC, and cross-chain swapped parts of this to Ethereum (500k SOUL and 20M KCAL)
  • Liquidity providers on Uniswap V3 and PancakeSwap had their provided ETH and BNB drained by the attacker
  • Some long time token holders “bought the dip”
  • Some long time token holders panicked and sold their token holdings
  • Some traders “bought the dip” – Some traders speculated on a “bounce” after a vertical drop in token value

All the relevant on-chain data for Ethereum and Binance Smart Chain has been analyzed, and the strategy for minimizing the impact on token holders and securing Phantasma’s strong continued growth has been designed and implemented.

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Claimable amounts during the migration procedure

Regular token holders

  • All SOUL and KCAL held in private wallets (Metamask, Trust etc) at Ethereum block height 14504583 (the block before the first sell made by the attacker) that did not transact during the incident will be claimable at a full 1:1 rate. If you held 1,000 SOUL in your wallet on the old token contract, you can claim 1,000 SOUL on the new contract. The attacker’s wallets are exempt from this as well as the Uniswap pool addresses.
  • All SOUL and KCAL held in private wallets (Metamask, Trust etc) at Binance Smart Chain block height 16584715 (the block before the first sell made by the attacker) that did not transact during the incident will be claimable at a full 1:1 rate. If you held 1,000 SOUL in your wallet on the old token contract, you can claim 1,000 SOUL on the new contract. The attacker’s wallets are exempt from this as well as the PancakeSwap pool addresses.
  • Wallets that have attempted to cross-chain swap SOUL or KCAL from Ethereum and Binance Smart Chain to Phantasma native SOUL or KCAL after the incident will have the correct number of tokens claimable through the migration procedure (for wallets trading, please see below regarding reimbursements).

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Token value peg for reimbursements and SOUL token supply

  • All reimbursements will be in SOUL, pegged at the current token value during the incident ($1.29). Similarly, for purposes of calculating SOUL reimbursements, ETH and BNB have been pegged to $3,451 and $446 respectively, their current token values at the time of the incident.
  • Team funds as well as the less than 1% additional SOUL tokens minted by the attacker (representing approximately 1/4th of the annual sustainable inflation) is being diverted to restitution of traders and liquidity providers. With Phantasma’s fully unlocked and decentralized token supply, this serves the dual purpose of providing restitution for our token holders and liquidity providers while also ensuring the incident does not affect Phantasma’s growth and success.
  • The KCAL token supply has been recalibrated on Ethereum and Binance Smart Chain to the amount that existed before the incident, negating the effect of the attack.

 

Wallets trading during the incident

The team has calculated net trading activity on DEXes, token values at the time of these trades and the values of the trades. All reimbursements for net sell/buy activities will be in SOUL.

  • Wallets showing a net sell of SOUL will have the fiat ($) value of the received ETH/BNB deducted from their claimable amounts on the new SOUL contract. Example: The wallet of a token holder who panicked and sold their complete holding of 1,000 SOUL at an average token value of $0.40 will be able to claim 690 SOUL on the new contract. At a pegged SOUL token price of $1.29, 1,000 SOUL represents a value of $1,290. The token holder has already received $400 as the result of the sale. This leaves $890 to be reimbursed. At a pegged SOUL token price of $1.29, this results in $890/$1.29=690 SOUL. This limits the negative impact for those who reacted on instinct during a highly stressful situation.
  • Wallets showing a net purchase of SOUL will be able to claim an amount of SOUL equivalent in fiat ($) value to the spent ETH/BNB. Example: The wallet of a token holder that bought SOUL for $1,000 worth of ETH (~0.29 ETH at the pegged token value of $3,451) or BNB (~2.24 BNB at the pegged token value of $446) during the incident will be able to claim 775 SOUL on the new contract ($1,000/ $1.29=775).
  • Wallets showing a net sell of KCAL will have the fiat ($) value of the received ETH/BNB deducted from their claimable amounts on the new KCAL contract. Example: The wallet of a token holder who panicked and sold their complete holding of 1,000 KCAL at an average token value of $0.01 will still be able to claim a partial amount of SOUL on the new contract. Similarly, the wallet of a token holder who held 10,000 KCAL and sold 3,000 KCAL during the incident will be able to claim 7,000 KCAL on the new contract as well as a partial amount of SOUL equivalent to 3,000 KCAL after subtracting the value of the received ETH/BNB. This limits the negative impact for those who reacted on instinct during a highly stressful situation.
  • Wallets showing a net purchase of KCAL will be able to claim an amount of SOUL equivalent in fiat ($) value to the spent ETH/BNB.

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Liquidity providers

  • All wallets providing liquidity on Uniswap will be able to claim the amount of SOUL and KCAL corresponding to their liquidity pool position at Ethereum block height 14504583 (the block before the first sell made by the attacker) at a full 1:1 rate.
  • All wallets providing liquidity on PancakeSwap will be able to claim the amount of SOUL and KCAL corresponding to their liquidity pool position at Binance Smart Chain block height 16584715 (the block before the first sell made by the attacker) at a full 1:1 rate.
  • Furthermore, all liquidity providers on both Uniswap and PancakeSwap will be able to claim an additional amount of SOUL equivalent to the fiat ($) value of the ETH/BNB drained by the attacker between the above mentioned block heights and pausing the contracts – this applies to liquidity providers on both SOUL and KCAL pools. Example: A liquidity provider whose position had $10,000 worth of ETH (~2.90 ETH at the pegged token value of $3,451) drained by the attacker will be able to claim an additional $10,000/$1.29=7,752 SOUL on the new contract.

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Claim your SOUL and KCAL

To claim your Erc20 or Bep20 SOUL and KCAL on the new token smart contracts, please visit the migration dApp linked below. Here you will be able to log in with your Metamask or Trust wallet to view your claimable balances of new tokens and claim them with a single button click.

claim.phantasma.info

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Migrating Safely and Responsibly,
Your Phantasma Team


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