Its painful when you transfer your tokens to a contract address and lose them forever. A small amount like 10,000 tokens may seem insignificant to some, but for the user who has lost them, it represents a significant value and causes great distress. Token Resurrection is a platform designed to help users recover their lost tokens by providing a comprehensive recovery solution.
When tokens are mistakenly sent to the wrong contract address and become irrecoverable, issuers might seem reluctant to mint new tokens to compensate the users. However, there are compelling reasons for issuers to participate. Pegged tokens like USDC, which have an audited market supply against reserves held in banks, our proposed solution introduces a concept of Gross Circulating Supply (total supply of USDC on blockchain) and Net Circulating Supply (Gross Circulating Supply - Tokens Locked). This method allows proper auditing and ensures transparency. Users receive 70% of their locked tokens back, while issuers get 20%, and 10% goes to Token Resurrection. The 20% received by issuers can now be used, adding value they would otherwise not be able to access.
DAOs like Optimism and Arbitrum aim to foster community growth and user engagement by providing grants and support. If users mistakenly transfer tokens to contract addresses and lock them permanently, DAOs can step in to help. DAOs have the authority to issue a certain percentage of their total value annually (e.g., 2% per annum for OP and ARB). By aiding users in recovering lost tokens, DAOs can increase trust and loyalty within their communities, encouraging more active participation on their platforms. Token Resurrection facilitates these recovery processes, verifying locked tokens, generating proof, creating a Merkle root for beneficiaries to attest using the Ethereum Attestation Service (EAS), and submitting recovery proposals to issuers or contract owners. Upon approval, tokens are disbursed according to the agreed-upon percentages, making the recovery process efficient and beneficial for all parties involved.