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VIDT Datalink KuCoin Security Incident action plan

While this incident was beyond our control, we are taking actions together with KuCoin and others to steer towards an optimal outcome for everyone. After careful exploration of any possible path and in the best interest of VIDT Datalink and our token holders, we have decided to implement a new VIDT smart contract.

B2B & B2C NFT functionality, BSC compatibility

As many of you already concluded, issuing a new smart contract is not as straightforward for us as it is for other projects, due to our core business model and subsequent technical foundation. It is our mission, however, to turn every challenge into something positive. This challenge gave us the opportunity to implement something ambitious in the contract that we have already been working on for months.

The new VIDT smart contract will be an evolved version, with new B2B & B2C NFT functionality and Binance Smart Chain compatibility. It will be connected and backwards compatible with the original contract for all validation and verification solutions.

The procedure of issuing a new smart contract also gives us a window to burn unclaimed and frozen tokens from past bounty campaigns and airdrops that have always been registered as circulating, even though they could never be used for validations.

Summary, advantages & actions

  • We are re-issuing VIDT tokens 1:1 via a new smart contract and will distribute them to existing VIDT token holders at the snapshot blockheight. All holders will automatically receive the same (rounded) amount of VIDT in their current wallets.
  • The previous tokens will no longer hold any value and utility after the swap and are rendered obsolete, the old tokens can not be transferred after October 2nd 12:00 CEST.
  • The new VIDT contract will be issued on October 1st and trading will resume on or before October the 4th.
  • VIDT holders must withdraw all tokens from liquidity pools (like Uniswap and Kyber) before October 2nd 12:00 CEST. After this date, tokens that are still in liquidity pools will be lost.
  • The ticker on exchanges, $VIDT, will not change

While an incident like this is very unfortunate for KuCoin, all the projects affected and their communities, we are making the best of this situation and the re-issuing of the VIDT smart contract by taking this opportunity to implement some very welcome technical upgrades.

Advantages for VIDT’s business side

  • We are adding functionality for the use of VIDT B2B NFT’s and a first real world project has started.
  • The new smart contract will be communicating with an NFT contract on Binance Smart Chain.
  • The new smart contract will reduce gas fees.
  • We are adding functionality to better streamline the platform for B2C applications.
  • While working towards the optimal outcome, we have been able to establish new relationships with other exchanges that reached out to help.

Advantages for holders of VIDT

  • The approximately 14M VIDT is saved.
  • KuCoin will be able to return all funds to their rightful owners, trading on KuCoin will remain totally unaffected.
  • An extra batch of approximately 400K VIDT will be burned, which comes from frozen (airdrop) wallets of which the owners were not able to complete bounty assignments and/or pass KYC before early 2019 to claim them. These tokens were, until now, registered as part of VIDT’s circulating supply, even though they were never going to be usable for validations.

What do VIDT holders need to do?

As said before, holders should withdraw VIDT from liquidity pools before October 2nd 12:00 CEST. After this date, any remaining VIDT in liquidity pools will be lost.

Please refrain from direct-messaging team members; any necessary news and instructions will be communicated through the VIDT Datalink News Telegram channel. There will be plenty of time after this procedure to dive deeper into details together.

Please be patient, while KuCoin updates their systems. Transactions might take a while, but all rightful owners will be taken care of.

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