Decentralized derivatives platform edgeX has completed the first phase of goodwill payments for users impacted by the June 2 EDGE token incident, according to an update released by the project on June 8.
As per the official statement, the emergency compensation program covers users who incurred realized losses after liquidations or stop-loss orders were triggered on EDGE long positions traded through Perp V1 and Perp V2 between 04:50 and 06:00 UTC+8 on June 2.
According to the platform, affected users who submitted support tickets through the project’s Discord channel and verified their losses qualified for compensation. “The goodwill payments for eligible users affected by the June 2 incident have now been successfully distributed,” edgeX stated.
Flash crash triggered industry attention
The compensation effort follows a dramatic market event on June 2 that attracted significant attention from traders and on-chain analysts.
According to an earlier incident report published by edgeX, the EDGE token experienced a sharp flash crash, losing approximately 77% of its value within roughly 60 seconds. The event triggered widespread liquidations and stop-loss executions across leveraged positions on the platform.
A subsequent analysis published on June 4 highlighted that the crash involved activity across 174 wallets and intensified scrutiny from market participants seeking answers regarding the rapid price movement and its impact on traders.
Following the incident, edgeX announced that it would introduce a goodwill compensation program to support users who incurred verified losses as a result of the market disruption.
The 50/50 compensation split
Under the compensation framework, eligible users can receive up to 100,000 USDC equivalent per account. The package is split evenly between USDC and EDGE tokens.
The first tranche, representing 50% of the total compensation, has already been distributed in USDC and is available for eligible users to claim through the platform’s rewards portal. The remaining 50% will be distributed in EDGE tokens during the first week of April 2027. According to edgeX, the token allocation will be calculated using a seven-day time-weighted average price (TWAP) of EDGE at the time of distribution.
The platform explained that the delayed token payout is linked to its tokenomics structure, with the allocation sourced from the EDGE Ecosystem and Community Allocation, which remains locked following the token generation event and is scheduled to begin vesting on March 31, 2027.
edgeX has also established a final deadline for users who have not yet submitted compensation claims. The platform is providing a final grace period until June 9 at 14:00 UTC+8 for affected traders to register through its Discord support system. Users who fail to complete registration before the deadline will no longer be eligible to receive compensation under the goodwill program.
The latest update generated mixed reactions among community members. While some users welcomed the completion of the first compensation tranche and praised the platform for honoring its commitment to affected traders, others continued to express concerns regarding the sharp decline in EDGE’s market value and the project’s long-term recovery strategy.
The June 2 event remains one of the most closely watched token volatility incidents of the year, particularly given the speed of the price collapse and its impact on leveraged traders.
Industry focus on user protection
The incident highlights a growing trend across the cryptocurrency sector, where exchanges and decentralized finance platforms are increasingly introducing compensation programs following market disruptions, technical failures, or security-related incidents.
Rather than presenting the payouts as a legal obligation, edgeX described the initiative as a goodwill measure designed to support affected users while the platform continues evaluating the broader impact of the June 2 crash.
“We sincerely appreciate your understanding, patience, and continued support,” the company said.
The second phase of compensation remains scheduled for April 2027, while market participants continue to monitor edgeX’s recovery efforts and the future performance of the EDGE token.
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