The Neutrl Foundation has formally released a protocol recovery plan and opened a community vote on whether to restart the protocol. The plan comes after the project temporarily suspended minting, redemption and core protocol functions, a move Neutrl attributed to an impact on its protocol reserves. The proposed framework includes rebuilding the reserve structure to prevent similar incidents, reopening minting and redemption in phases, updating risk management models, and improving the transparency of real-time reserve reporting. It also provides for compensation and recovery distributions to users who were holding positions at the time of the suspension. The vote is now open and is scheduled to last five days. In the event the proposal is approved, protocol functions will be restored under the new framework within 48 hours after the vote is finalized, with eligible users receiving their recovery distributions on a pro-rata basis. If the proposal is not approved, the team has committed to submitting a revised plan within 14 days, taking community feedback into account. Separately, Foresight News previously reported that Neutrl had temporarily halted minting, redemption and other protocol operations because its reserves were affected.
Decentralized yield protocol Neutrl's foundation said it has published a detailed recovery plan and opened a community vote on whether the protocol should restart.
The plan follows a temporary halt of minting, redemption and core protocol functions. Neutrl previously said the suspension was triggered by an impact on its protocol reserves.
Under the proposal, the team would rebuild the reserve framework to prevent similar incidents, progressively reopen minting and redemption, update risk management models and strengthen real-time reserve reporting transparency. Users who held positions during the halt would receive compensation and recovery distributions.
The vote is live and will last five days. If approved, protocol functions will be restored under the new framework within 48 hours after the vote is finalized, with eligible users receiving recovery distributions on a pro-rata basis. If rejected, the team has pledged to submit a revised plan within 14 days based on community feedback.
Foresight News previously reported that Neutrl had temporarily stopped minting, redemption and other protocol functions after its reserves were affected.
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