Ostium Phase 2 Recovery Plan: Installment Payments in USDC or Conversion to Ostium Labs Equity

Foresight News reports that Ostium has tweeted an update on the design of its Phase 2 recovery plan, applicable to OLP holders who have losses exceeding 1,000 USDC and have not opted for the Convenience Allocation. The plan includes two options: the default Option A involves installment payments in USDC, with funding sources including a proportional share of recovered funds (after deducting Phase 1 recoveries and future recoveries), a designated proportion of revenue from the Ostium protocol and Gateway (initially 50% of Ostium opening fees), and potential incentives or revenue sharing from partners. The optional Option B involves equity in Ostium Labs, to be allocated during the next priced financing round, with the same class of equity as held by the team. Participating OLP holders can collectively receive up to a fixed proportion of equity. The Phase 2 portal will go live on October 30, at which point the outstanding losses of eligible OLP holders will be included in the Option A recovery contract, and proportional claims can be made as funds are deposited. Holders may express in advance the proportion of losses they wish to convert to equity, though this expression of intent is non-binding. During the next priced financing round, holders can confirm the actual conversion amount within the selection window, with conversion based on the valuation of that round. If the total applications exceed the cap, equity will be allocated proportionally. Ostium stated that the specific mechanisms and amounts for each option are still being finalized, and this recovery plan is offered on a voluntary basis with no guarantee of full loss recovery.