Cap Protocol founder Benjamin has publicly apologized and responded to community backlash following the controversial reduction of the Stabledrop airdrop allocation from 11 million to 4.2 million tokens. According to ChainCatcher, Benjamin stated that the team committed prematurely to an 11 million airdrop size before securing full funding, and later fundraising fell short as market conditions changed, forcing the pool to shrink to 4.2 million.
Benjamin explained that the team temporarily changed the planned linear distribution into a restructuring model designed to preserve principal without profit, aiming to prevent early YT (yield token) holders from suffering principal losses. He emphasized that the rule applies equally to all wallets.
Addressing community allegations that a related whale wallet engaged in “insider point farming,” Benjamin clarified that the wallet belongs to a former colleague and is not controlled by the team, adding that no project treasury funds were used in that wallet.
Benjamin also stated that the Cap protocol remains healthy, and that a weekend decline in total value locked (TVL) was mainly driven by a spike in USDM borrowing rates on Aave on MegaETH, which led arbitrage participants to exit. He said the TVL move was unrelated to the airdrop dispute and that all redemptions were processed smoothly.