Prisma posts update on events, issues new recommendation of 50% cut to protocol emissions

Prisma Finance has published a detailed post-mortem and recovery plan following the March 2024 security incident in which its protocol was exploited and funds were drained from users’ positions. In the new governance update, the team outlines what has happened since the exploit, the current status of user reimbursements and protocol operations, and proposes a path forward for the protocol’s economics and incentives. As part of this path forward, Prisma’s core contributors recommend a 50% reduction in protocol emissions, arguing that lowering incentive emissions is necessary to realign token economics with the protocol’s post-incident scale, restore sustainability, and gradually rebuild trust. The update explains that the protocol has been relaunched with enhanced security processes and audits, and that compensation mechanisms and negotiations with the exploiter have shaped how much capital can realistically be made whole. In this context, emissions—previously used to aggressively bootstrap liquidity and adoption—are now seen as too dilutive relative to protocol usage, so the recommended 50% cut is framed as a defensive, long-term move rather than a temporary measure. For users, the post highlights that Prisma intends to continue operating as a CDP and LST-backed stablecoin protocol, but with more conservative incentives and a stronger emphasis on security and treasury management following the exploit.

✨ AI-generated background, compiled from web sources — not editorial content.

More coverage

• The PRISMA 2020 statement: an updated guideline for reporting ... (pubmed.ncbi.nlm.nih.gov)
• Update to the PRISMA guidelines for network meta-analyses and ... (pure.johnshopkins.edu)
• PRISMA Guidelines Systematic Review - DistillerSR (distillersr.com)
• Systematic Reviews: PRISMA - Research Guides - Emory University (guides.libraries.emory.edu)
• PRISMA statement (prisma-statement.org)

Explore the topic

• update
• Prisma