Polyhedra Launches Phoenix Revival Program After 89% Token Drop

Polyhedra has launched the Phoenix Revival Program, a new initiative aimed at rewarding users who remained loyal to the project during its June 15 liquidity crisis. Announced on July 1, the program is designed for on-chain Polyhedra Network (ZKJ) stakers who held tokens on Ethereum (ETH) or BNB Chain (BNB) at 13:00 UTC on the day of the crash. Eligible users will gain early access to future ecosystem airdrops and a share of incentives from upcoming Polyhedra products, including its ZKML platform, privacy-preserving stablecoin, and dark pool trading protocol.

The size of each user’s rewards will be based on their staking power at the time of the snapshot. This program is part of a broader strategy shift for the protocol, which was also announced alongside the initiative. Polyhedra’s roadmap will now focus on zero-knowledge infrastructure, including the upcoming Dark Pool decentralized exchange, a compliance-ready privacy stablecoin, and its ZKML inference engine. Additionally, the protocol plans to launch EXPchain, a Layer 1 blockchain specifically designed for zk applications.

The Phoenix Revival Program follows one of the most severe events in Polyhedra’s history. On June 15, the ZKJ token experienced a dramatic drop, plummeting from around $2 to under $0.35. This crash was triggered by a coordinated liquidity withdrawal on PancakeSwap, where one wallet removed $4.3 million in LP tokens and then quickly sold over 1.5 million ZKJ. The situation was further complicated by additional ZKJ deposits to exchanges by a Wintermute-linked wallet during the same period, though no direct link to the attack has been confirmed. The crisis was exacerbated by cascading liquidations on Bybit, where up to $97 million in leveraged long positions were wiped out within two hours.

In response to the crisis, Polyhedra injected $30 million in stablecoins into DEX liquidity pools and initiated a token buyback plan. However, the ZKJ token has yet to fully recover, trading at $0.205 as of the latest update, down 89% for the month. This represents a 94% decline from its all-time high of $4.01, which was set in March 2024.

Despite the recent volatility, Polyhedra’s team has reiterated its commitment to long-term product delivery and rewarding users who maintained their stake through the turmoil. The Phoenix Revival Program is a clear indication of the protocol’s dedication to supporting its loyal community and continuing its development in the zero-knowledge infrastructure space.