Kawakami (KAWA) Hack & Relaunch FAQ
Our team has created this FAQ article to address all the questions our community and investors have asked in the past couple of days following the KawaFarm incident and to explain what happened and will be happening from here on:
- What exactly happened?
The deployer address used to deploy the staking contract got hacked. From there the hacker changed the staking contract ownership from the original deployment address to their disposable address and then executed an emergency withdrawal function, withdrawing all staked tokens as well as staking rewards to their wallet. The hacker then proceeded to sell the tokens for a total worth of 60 ETH. The hacker has washed the funds via Tornado Cash. We are currently investigating how the deployment address was hacked — more information will be shared with the Kawakami community as we get new findings on the incident.
- Were the Kawakami team involved?
No team member has been found to be involved in the incident so far however everyone and everything will be checked as part of the ongoing investigation.
- Are my funds safe on the BSC network?
The tokens you held on BSC network at the time of the incident are no longer valued at what they were before the hack due to people panic selling when the community found out what happened. Regardless of what happened with the existing BSC network tokens that you hold, you will be rewarded with new tokens awarded at a 1:1 ratio (meaning you get the same number of tokens on the new contract) when KAWA launches later this week.
- Are my funds safe on the ETH network?
The tokens you held on ETH network at the time of the incident are no longer valued at what they were before the hack due to the sell off created by the hacker. Regardless of what happened with the existing ETH network tokens that you hold, you will be rewarded with new tokens awarded at a 1:1 ratio (meaning you get the same number of tokens on the new contract) when KAWA launches later this week.
- What are the assets that were stolen?
The staking contract for KawaFarm was exploited leading to the loss of all tokens staked at the time. The tokens hacked include KAWA, xKAWA, SHIB, FLOKI, SAITAMA, KISHU, and SHIBGF.
- How will we know if our staked assets were taken?
If you had tokens staked on KawaFarm at the time of the exploit, your assets were taken. They will be paid back to you as soon as possible as the team has made it our priority to pay back anyone affected.
- Am I going to be at a personal financial loss?
The assets you lost will be reimbursed as soon as possible. The team will pay back everyone affected in KAWA/xKAWA, their lost assets, or ETH, depending on what and when they lost them.
- Will the price be different after relaunch?
The team plans to launch the new KAWA token (v3) at a lower market cap meaning lower price per coin than the v2 contract that was traded until now. The v2 token’s last market cap valuation was $1.8 million dollars ($0.0000018 per coin). We plan to launch somewhere in the range of $500k and $1 million dollars market cap, so roughly 2–3 times lower than the v2 token.
- Why are you launching at a lower price point? Isn’t that unfair to v2 holders?
Your v3 tokens will have less USD value at launch than what it was on v2 before the hack. The reason we are launching at a lower market cap instead of replicating the v2 market cap is because we want the liquidity pool to be much healthier by the time we reach that price point again, which in turn leads to less volatility and is more appealing to new investors. When we initially relaunched v1 to a v2, we decided to go with the identical market cap of the original contract, which proved to be a poor decision as we couldn’t pool enough ETH for such a high market cap.
- Will I receive the same price of my tokens that I staked?
At launch your tokens will be worth less in US Dollars. As new investors begin to buy the improved v3 token, the USD worth of your tokens will get back to their original value.
- Will the assets be relaunched on BSC/ETH?
We are going to launch initially on the ETH chain and later on BSC. All tokens will be airdropped on the ETH chain, and once we launch on BSC, we’ll have the bridge functional again to be able to move your tokens back and forth
- Will the farm be coming back?
The farm (KawaFarm) will remain locked until we put better security measures in place, but also optimize other farm aspects such as staking incentives, making it more sustainable in the long run, and finding better solutions for gas-inefficient transactions. More information on the KawaFarm’s return will be shared with our community when we have news to announce. In the meantime the team will focus on the remaining items on our roadmap and building our flagship product, KawaTools.
- What security measures will be in place in the future?
The KAWA v3 token that will launch soon will have the keys to liquidity tokens burned to a dead address, meaning the liquidity will remain locked forever. Contract ownership will be assigned to the team multisig wallet with multiple approvals required to make any changes. We will also consider renouncing the contract shortly after launch, once we are sure that everything is working well. The farm itself will remain disabled until we are sure it can be safely used and that it provides enough value to the ecosystem.
- Will I get my tokens back?
We already have a snapshot taken that includes KAWA/xKAWA holders and farm stakers before the hack. After we launch, everyone gets the exact number of tokens they held or staked before.
- Will I get my money back?
You will be compensated according to the plan set out in the TL;DR section at the bottom of this FAQ.
- What will be changing?
The relaunched contracts will be improved for both KAWA and xKAWA — they will be optimized to cost less gas when trading and making wallet to wallet transfers, the way tax money is processed will be improved so we use the collected tax in a more efficient way. The farm will be disabled and locked until we establish better security protocols.
- Will long term holders be compensated?
We have plans to compensate our loyal diamond hand community members. The form of compensation will be disclosed and made clear to everyone soon.
- What about compensation for other non-native pools?
We have a snapshot of all the non-native staked assets. We will make sure to compensate everyone individually to pay back in the form of ETH or staked assets.
- Do I need to do anything to get my tokens?
You don’t have to do anything to get your tokens, we are going to airdrop the exact amount you held in your address. The only action you’ll be taking is adding the new KAWA v3 contract address to your wallet so that your tokens can become visible to you. We’ll also have a portal for claiming your tokens set up. Those who wish to claim their tokens and pay the gas to do it will be able to do so instead of waiting for the airdrop to begin.
- Why do you have a claim portal set up?
Airdropping everyone at once can be expensive. We will have a claiming portal up for anyone that wants to claim their token along with a special reward for doing so. More details on that soon.
- How do I claim the new KAWA tokens?
The claim portal will go live within 24 hours of KAWA v3 launch. Upon going live the portal will be active for 72 hours before shutting down. A reward for helping us manage expenses by claiming your tokens will be presented upon claiming the tokens.
- What if I don’t claim the tokens?
If you don’t claim the tokens and after the timeframe to claim them closes, we will begin to airdrop our holders. This will not cost you any gas and they will be airdropped straight to your wallet.
- Do I need to send my old v2 KAWA to get v3 KAWA tokens?
You don’t need to send your old KAWA tokens to get the new one. We asked people to send them in to help us drain the v2 liquidity as we have it locked. Sending or not, everyone gets their tokens in their wallets. But know that sending the tokens is for the good of the project.
- Should I buy it now?
Do not buy the current KAWA or xKAWA tokens until we announce they are relaunched. KAWA will launch first, with xKAWA launch planned for a few weeks later.
- Should I sell it now?
As the trade tax (both buy and sell) is set to 99% to prevent trades as much as possible, it is advised not to sell KAWA or xKAWA tokens until we announce they are relaunched. KAWA will launch first, with xKAWA launch planned for a few weeks later.
- What should I do with KAWA/xKAWA tokens in my wallet?
You can just wait for the relaunch of the tokens and claim your new tokens or wait for us to airdrop them to your wallet. If you want to help the team launch the new tokens with a higher liquidity pool, you can send your KAWA or xKAWA tokens to our development fund address so we can sell those tokens and collect more ETH for the launch liquidity.
- OK, I want to help, where should I send the tokens?
The addresses to send the tokens for those who wish to support us:
ETH network (KAWA, xKAWA):
BSC network (KAWA):
- Can I buy the new KAWA token yet?
KAWA v3 contract is still not deployed nor ready for trade. It will be launched in the 3rd week of February 2022, sometime between Friday and Sunday, will the exact date announced soon.
- My staked KAWA got stolen — you will receive the new KAWA when we relaunch KAWA.
- My staked xKAWA got stolen — you will receive new xKAWA when we relaunch xKAWA.
- My staked SHIB/FLOKI/SAITAMA/KISHU/SHIBGF got stolen — we have created a record of all non-native staked assets stolen and will be working with every affected investor individually to pay back in the form of the lost asset or ETH.
- My v2 KAWA is worthless — you will receive v3 KAWA when we relaunch it at a 1:1 ratio.
- My v2 xKAWA is worthless — you will receive v3 xKAWA when we relaunch it at a 1:1 ratio.
- How will I be compensated — you will be able to choose between claiming yourself and paying the gas to claim, or wait for the airdrop to your wallet.
- I sold KAWA/xKAWA immediately after the hack — we will examine such cases and determine whether they are eligible for the KAWA/xKAWA compensation.
- I bought KAWA/xKAWA after the hack — investors who bought after the hack will have their money refunded in ETH as soon as possible after the relaunch.
- I held my KAWA/xKAWA in a wallet (ETH address) — you will be eligible for compensation on the ETH network.
- I held my KAWA in a wallet (BSC address) — you will be eligible for compensation on the ETH network as the BSC will remain inactive until updated.
- I held my KAWA on LBank exchange — you will be eligible for compensation on LBank.
V3 Relaunch Details
- KAWA relaunch — week 3 of February 2022, between Friday and Sunday. Exact date to be announced soon.
- xKAWA relaunch — a few weeks after the KAWA relaunch, depending on the success of the relaunch (how long it’ll take to collect enough ETH for liquidity), but we also want to finalize the whitepaper and make the use case of xKAWA crystal clear before it relaunches.
- Total supply — both tokens will keep the same supply, 999,999,999,999 for KAWA and 500,000,000 for xKAWA
- KAWA ETH launch liquidity — 25 ETH minimum (subject to increase)
- KAWA launch market cap — we will aim for a market cap between 500k and 1 million.
As always we would love to hear the community feedback on the relaunch plans and address any concerns regarding the future of the Kawakami.