Cap founder Benjamin issued an apology and response amid controversy over a reduction in Stabledrop allocations. According to ChainCatcher, he said the team committed too early to an 11 million airdrop size before funding was fully secured, and later fundraising fell short as market conditions changed, shrinking the airdrop pool to 4.2 million.
Benjamin said the team temporarily changed the planned linear distribution into a restructuring model designed to preserve principal without profit, aiming to prevent early YT (yield token) holders from suffering principal losses. He said the rule applies equally to all wallets.
Addressing community allegations that a related whale wallet engaged in “insider point farming,” Benjamin said the wallet belongs to a former colleague and is not controlled by the team, adding that no project treasury funds were used.
He also said the Cap protocol remains healthy and that a weekend decline in total value locked was mainly driven by a spike in USDM borrowing rates on Aave on MegaETH, which led arbitrage participants to exit. He said the TVL move was unrelated to the airdrop dispute and that all redemptions were processed smoothly.
Anais
