Polyhedra Launches Phoenix Revival Program After 90% ZKJ Token Crash

Polyhedra, a blockchain project, has launched its Phoenix Revival Program to reward stakeholders who held through a 90% crash in the value of its ZKJ token. The crash, which occurred on June 15, saw the token's value plummet from $2 to below $0.35 in under two hours, wiping out over $500 million in market value. The collapse was triggered by a $4.3 million liquidity withdrawal from PancakeSwap by a single wallet, followed by the rapid sale of 1.5 million ZKJ tokens.

The Phoenix Revival Program targets users who had staked ZKJ tokens on-chain via Ethereum or Binance Smart Chain as of 13:00 UTC on June 15. Eligibility and reward allocation will be based on each user’s staking power at that exact moment. This approach, according to Polyhedra, recognizes loyalty and long-term participation rather than short-term speculation.

Through the program, eligible users will gain access to incentives tied to future Polyhedra products and whitelist placement for upcoming ecosystem airdrops. These benefits will be integrated into multiple ongoing and future product rollouts, such as ZKML—a zero-knowledge and AI hybrid verification tool, a zkSNARK-based privacy stablecoin, the zero-knowledge decentralized exchange “Dark Pool,” and EXPchain, a zk-native Layer-1 blockchain with live testnet and forthcoming cross-chain functionality.

However, the community’s reaction to Polyhedra’s Phoenix Revival Program was negative. Many viewed it as a betrayal of trust and an indication that the team was retreating from financial responsibility. Instead of directly addressing the damage caused by the crash, the team focused its recovery plan on future access to new product features and airdrops.

This forward-looking approach failed to satisfy many stakeholders who were still grappling with immediate losses. A sense of abandonment pervaded community discussions, with users expressing frustration that Polyhedra appeared more concerned with salvaging its roadmap and image than compensating those who had lost substantial funds.

Adding to the frustration, community members noted that the planned staking incentives and ecosystem benefits were only useful if the project and its token regained value, something many now doubted. As of press time, the token was trading at $0.1962, down 6.25% on the day and 82.65% over the past year. Since its peak at $4.01 in March 2024, ZKJ has lost more than 94% of its value.

In response to the liquidity drain, Polyhedra injected $30 million worth of stablecoins into its DEX pools and announced a temporary buyback. However, this failed to stabilize the market, and skepticism quickly mounted when on-chain researchers discovered that wallets linked to the team may have been involved in draining the KOGE/USDT liquidity pool. These wallets later swapped KOGE for ZKJ and dumped large amounts into the open market, raising concerns of a coordinated exit.

Although Polyhedra denied any direct involvement, the community remained unconvinced. The Phoenix Revival Program, while aiming to reward loyalty, has left many stakeholders feeling betrayed and uncertain about the project's future. The situation highlights the challenges faced by blockchain projects in maintaining trust and stability during times of crisis.