Bitcoin DeFi Platform ALEX Lab Retains Admin Rights For Key Functions

According to Odaily, Bitcoin DeFi platform ALEX Lab has clarified why it retains administrative rights over its smart contracts. The platform has faced questions from many users regarding this decision. The primary reason is to enable crucial functions such as minting and destroying tokens, which are vital for implementing community-decided governance actions. For instance, if the community decides to migrate or upgrade certain features on the ALEX platform, it may require transferring the ALEX tokens currently locked in smart contracts to new smart contracts. Without administrative rights, these operations would not be feasible, potentially hindering improvements and updates. Similarly, for aBTC, administrative rights are necessary to facilitate bridging operations. When users want to peg aBTC with Bitcoin, the official bridge needs to destroy the relevant aBTC to maintain the correct supply and reserve. In both these scenarios, administrative rights ensure that ALEX can effectively execute community-driven decisions and maintain the system's integrity. In mid-May, ALEX Lab suffered a loss of $4.3 million due to an attack. Following this, it sold 3% of its tokens to raise $10 million in USDC, of which $7 million was used for bounty or Treasury Grant projects.