Why Cap Cuts Its Stabledrop Rewards From $11M to $4M: Uneasy Money

**Taylor Monahan** (0:00)
So, I'll give you, it's the end of the episode. I'll say, we have not attributed this to a specific threat actor whatsoever. However, since I spent eight hours tracing this shit straight yesterday, nonstop, and they did not stop, and I could not keep up, that is a pretty strong indicator that it's probably someone in North Korea who's doing this shit.

**Kain Warwick** (0:20)
Hey everyone, I'm Kain Warwick, and welcome to Uneasy Money, because what happens on Chain never stays on Chain. Before we begin, here's a word from the sponsors that make this show possible.

**SPEAKER_3** (0:32)
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**Kain Warwick** (0:58)
All right, hey, guys. I am here with my co-hosts, and we have two guests this week. Luca is still out. As Tay pointed out during the break, he's out hunting more advertisers for us. So hopefully, hopefully he's doing a good job out there. We seem to have some new advertisers, so it must be working. Good luck, Luca. Godspeed.
So, we have Tay, our resident security expert, and we also have two people joining us from Cap, Benjamin and Weso.
So our first segment this week is Cap and the Stabledrop blow up. Now, I should say I'm an investor in Cap, so I'm definitely going to throw these guys some softballs, but it's up to them to knock them out of the park. So we'll see how we go. Good luck, guys.

**Benjamin Sarquis Peillard** (1:58)
Wow, thanks.

**Kain Warwick** (1:59)
So let's roll through.
So Cap is a Stabledrop. I met you guys through MegaEath, through one of the mafia groups, right? I feel like this is back three years ago or something. So you guys run a coin, you mint STC USD. We're really running out of tickers here.
We're into the nine Ticker USD stable coins. And CUSD, which has a few redemptions. There's no white list, and you're deployed around a mega ETH. So the controversy was this Stabledrop. So in Feb, you committed to an 11 million token Stabledrop reward. And just to be clear, the Stabledrop was like, you're gonna give people stable coins instead of tokens.

**Benjamin Sarquis Peillard** (3:09)
Right. It's a new thing. That was the premise of this. Stabledrop, yeah.

**Taylor Monahan** (3:14)
Okay. And then what happened?

**Kain Warwick** (3:17)
Okay, got it, got it. I mean, yeah. And then some stuff happened.

**Benjamin Sarquis Peillard** (3:23)
And then some stuff happened. A lot of stuff happened. I mean, look, we did a points program. Like many people do. And the points program ended. Everybody, most people left. Like again, most people do. And we were very happy with our early users. So we decided to give them our reward. And instead of giving them tokens, which is usually what happens, projects give around 5% of their token supply for the first-ever job. This is the expected unspoken rule. We decided to try something different and create some certainty. There's people that want to buy the token when we TGE, and there's people that want to get the airdrop when we TGE. And they're not aligned at all, right? The people that want to buy the token have to wait until the airdrop people sell. The airdrop people want to sell as fast as possible so they all get the best yields possible. So we said, let's arrange this so that we do an ICO, get some money, give that money to the stable job guys, and then everybody should be happy.
We jumped the gun a bit, and we told people the amount of money we wanted to give them, the stable coins we wanted to give them, which is around 5 percent of the value of our token, which we thought would be $11, $12 million.
At the time we were going to do the ICO.
Long story short, market tanks, we started at winter, it's not great, so we postponed the ICO, and we did it now recently. And in the end, that 5 percent of value is no longer worth $11-12 million. We were able to raise around $4 million.
So $4 million was our new budget. Now we have a new budget, it's much less than the original. And we debated a lot what to do. Do we give tokens? Definitely not in the plans, because then we go to zero, then what's the point of doing this at all, right? You need to take care of your stakeholders. And so we decided to stick to our 5 percent budget. And we debated it with our investors, with our users, and we decided that instead of giving some people maybe one or two percent reward, whereas some people were losing 90, 100 percent on the YTs, we said let's make everybody whole, so at least nobody lost any money. And so the people that really were losing were the YT guys, and we made them whole. And then everybody else, they didn't make any money, but they didn't lose any money. That's sort of the background, that's the context.