After successfully launching their Huobi buyback program, the giant crypto exchange has pledged to buyback tokens on the open market with 20% of its revenue. Each season 20% of the tokens bought again by Huobi will be stored in their Huobi user protection fund to protect users’ interest and compensate for their losses in cases of emergency. All funds will be converted into USDT to avoid volatility.
Huobi has a total supply of 303 million Huobi tokens in circulation. 704,000 tokens were locked while 4,860,000 tokens locked for OTC merchants. 29 million tokens were bought back from voting revenue, and 15 million from partners. A total of 70 million tokens were bought back this season.
Because of the high revenue from the voting in the first quarter, the revenue of the secondary market buyback does not include the token voting revenue, but at the same time all the revenue of the voting in the quarter was included and locked positions of the Investor Protection Fund for the protection of investors in all kinds of emergencies. The revenue from the HADAX first round of voting are also included in the Investor Protection Fund, which so far has 38.3599 million HT. Super Node, Super Partner and OTC Merchant, security deposit of project team and so on, have a total locked amount of 32.0947 million HT. (Huobi)
Huobi is also introducing the security reserve fund.
A lot of hacks have happened in the year that cryptocurrencies went mainstream. Japanese exchange Coincheck saw $530 Million hacked in January and the all known Mt Gox hack where 740,000 Bitcoins (around $6 billion in today’s market)
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https://medium.com/@benchi10/the-huobi-buyback-program-launches-to-protect-users-funds-6243607c8b68
