Cap founder Benjamin apologized after controversy over the reduced Stabledrop allocation and laid out the project’s explanation in detail. He said the team had committed too early to an 11 million airdrop before funding was fully secured. After market conditions changed, fundraising came in below expectations, shrinking the actual airdrop pool to 4.2 million.
Benjamin said the team then replaced its planned linear distribution with a temporary restructuring model designed to preserve principal but offer no profit for early YT holders, with the goal of ensuring that no participant takes a loss. He added that the rule applies equally to all wallets.
Addressing community criticism around a whale wallet suspected of internal score farming, Benjamin said the address belongs to a former colleague rather than the team itself and that no treasury funds were used. He also said the Cap protocol remains healthy and argued that the TVL drop seen over the weekend was mainly driven by a spike in USDM borrowing rates on Aave on MegaETH, which pushed arbitrage traders to exit, rather than by the airdrop dispute. According to him, all redemptions were processed smoothly.
Cap founder Benjamin has apologized over the controversy surrounding the reduced Stabledrop allocation, saying the team moved too early when it promised an 11 million airdrop before funding had been fully secured.
According to his statement, fundraising later fell short of expectations as market conditions changed, cutting the actual airdrop pool to 4.2 million.
Distribution plan changed
Benjamin said the team temporarily replaced its original linear distribution plan with a restructuring model aimed at preserving principal but offering no profit, in order to prevent early YT holders from suffering a real loss of principal. He said the rule applies equally to all wallets.
Response to whale wallet criticism
On community claims that a related whale address may have been involved in internal score farming, Benjamin said the wallet belongs to a former colleague and is not operated by the team. He also said no project treasury funds were used.
Explanation for the TVL decline
Benjamin added that the Cap protocol remains healthy. He said the TVL drop seen over the weekend was mainly caused by a surge in USDM borrowing rates on Aave on MegaETH, which led arbitrage traders to leave, and was unrelated to the airdrop dispute. He also said all redemptions were processed smoothly.
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