The Stable Pre-Deposit Program — Phase 2 has concluded. Over 10,000 verified wallets contributed more than $1.1B in eligible deposits, marking the largest fully verified on-chain pre-deposit program to date. Allocation details, including the $1,000 minimum, are provided below.

Phase 2 was designed to be open, fair, and accessible. As challenges emerged, certain requirements were adjusted in real time to preserve fairness for legitimate users. The application processed ~$2.4B during the 36-hour window, despite a sustained, coordinated DDoS attack.

Shortly after launch, the program came under a sustained and coordinated DDoS attack aimed at disrupting backend infrastructure. Traffic surged far beyond expected levels within seconds, and attack patterns shifted over time in ways consistent with an organized, non-organic source. As the incident unfolded, adversarial actors also circulated misinformation about Hourglass’ RPC and infrastructure, despite the issue originating from the DDoS itself. To preserve fairness during the attack, certain participation requirements were simplified in real time to remove avoidable friction and ensure legitimate users could still access the window under adversarial pressure. Cloudflare’s Emergency Incident Response Team was activated to deploy targeted mitigations that restored stable operation. Despite continued malicious traffic, Hourglass remained accessible throughout the window and ultimately processed ~$2.4B in total inflows.

The verification process for Phase 2 was designed to protect legitimate participants and ensure that every position reflected an independent user acting on their own behalf. To support that goal, multiple layers of review were applied, including identity verification (Sumsub), Chainalysis wallet screening, and broader data analysis across submission behavior and metadata. As these reviews progressed, some applications showed elevated sybil-risk indicators, and additional checks were introduced to preserve fairness. Applications that did not meet these strengthened criteria were removed.

Allocation for Phase 2 follows a pro-rata structure based on eligible deposits, with a guaranteed $1,000 minimum so smaller participants aren’t diluted by larger depositors. The first $1,000 of every eligible deposit is allocated at 100%; amounts above $1,000 are allocated pro-rata. Based on ~$1.1B in eligible deposits and a $500M deployment capacity, the final pro-rata rate for amounts above the $1,000 minimum is ~45%, with the remaining ~55% returned as refunds. Refunds for any unallocated portion will be available early next week. Users marked ineligible can continue to withdraw at any time.

Phase 2 ultimately became the largest fully verified pre-deposit program ever completed on-chain, while remaining fair, accessible, and resilient in the face of significant adversarial pressure. Allocated funds are expected to be returned around the end of the year. These funds are now moving to Anchorage, where $500M will be deployed through a top-tier investment bank. Additional announcements to come. Thank you to everyone who participated — this is just the beginning.