This proposal requests a treasury spend of 8980000 BSX to reimburse 33.49 KSM that was permanently trapped due to a confirmed bug in the xTokens pallet used by Basilisk after the Kusama Asset Hub migration.
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The reimbursement amount is calculated based on the BSX/KSM exchange rate at the moment of referendum creation, providing a transparent and fair conversion.
On-chain Evidence
Basilisk XCM message:
https://basilisk.subscan.io/xcm_message/kusama-79d0c8c5284a2a89d1537d968381b75fd7916eb4
These links show that the XCM execution failed due to incorrect reserve chain targeting and that no corresponding credit was made on the destination chain.
Rationale for Reimbursement
The loss was caused by a Basilisk chain-level bug, not user error.
Funds were irreversibly destroyed in the process.
Treasury reimbursement is the only possible remedy.
This approach has precedent across ecosystem parachains when chain logic errors cause user losses.
This proposal asks for 8,980,000 BSX to fix a problem with Basilisk, a project on the Kusama network. A bug in the xTokens system caused 33.49 KSM to be lost after a migration. The amount to be reimbursed is based on the exchange rate at the time of the referendum.
The links show that the XCM message failed because of incorrect targeting, and no credit was made on the destination chain. The loss was due to a bug in the Basilisk chain, not user error. The funds were lost and can't be recovered. The only way to fix this is with treasury reimbursement. This has been done before in the ecosystem when chain logic errors cause user losses.