Ostium Updates Phase 2 Recovery Plan Offering USDC Installments or Equity Choice
Ostium has modified its second-phase recovery plan for OLP holders who lost more than 1,000 USDC (CRYPTO:USDCUSD) and did not opt for the Convenience Allocation. Affected investors will be able to choose between receiving payouts in USDC installments under Class A or converting part of their losses into equity in Ostium Labs through Class B.
The updated strategy gives impacted users flexibility while establishing dedicated funding sources for cash recoveries. The USDC installment option will be backed by post-Phase 1 asset recoveries, future recovered funds, and revenue from the Ostium protocol and Gateway, beginning with half of all opening fees. For investors seeking long-term exposure, the equity path offers shares on the same terms as the team at the company's next priced funding round.
Eligible holders can access the Phase 2 portal starting October 30, 2026, when remaining losses will be transferred to the recovery smart contract. Investors can express non-binding interest in equity ahead of time before confirming their final choice during a formal selection window at the next financing round. Ostium noted that specific terms are still being finalized and that the voluntary plan does not guarantee full recovery.
Key points
- Ostium revised its Phase 2 recovery framework for OLP holders who lost more than 1,000 USDC and skipped the Convenience Allocation.
- Class A provides payouts in USDC installments funded partly by 50% of initial Ostium opening fees and recovered assets.
- Class B lets holders convert losses into Ostium Labs equity on the same terms as company founders at the next priced funding round.
- The Phase 2 portal launches on October 30, 2026, allowing eligible users to claim cash installments as funds become available.
- Participation is voluntary, and Ostium emphasized that complete loss recovery is not guaranteed.
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What are the two options in the Ostium Phase 2 recovery plan?
Holders can choose Class A payouts in USDC installments or Class B equity in Ostium Labs. Class A is funded by protocol revenue and recovered assets, while Class B provides equity shares during the next priced funding round.
When does the Ostium Phase 2 recovery portal go live?
The portal is set to launch on October 30, 2026. Eligible OLP holders can track outstanding losses added to the Class A recovery contract and claim USDC installments as funds are deposited.
Does the Ostium recovery plan guarantee full reimbursement?
No, participation in the Phase 2 recovery plan is voluntary, and Ostium stated that it does not guarantee full recovery of lost funds.