Drift Protocol began accepting claims and processing redemptions for its DFX recovery token on October 1, offering users a pathway to recover USDT losses from an April security breach. The mechanism operates under a fixed exchange rate: one DFX token corresponds to one USDT of verified loss, with redemption payments drawn from a pool containing approximately 3.1 million USDT. At launch, the rate equated to about 1.04% of the total verified losses, translating to roughly 0.0104 USDT per DFX token. DFX functions as a tradable asset on the Solana blockchain, distinct from the DRIFT governance token. The total allocated supply of DFX stands at 299,500,810.998 tokens, representing nearly 299.5 million USDT in documented losses. Each redemption permanently removes the redeemed tokens from circulation, reducing the outstanding supply. Transactions involving redemption require both the USDT transfer and token burn to complete simultaneously; partial redemptions allow retained tokens to remain active in the pool. Holding unspent DFX preserves eligibility for future distributions, though the scale and timing of subsequent deposits remain subject to market conditions. The redemption price is calculated as the current pool balance divided by the remaining DFX supply, a ratio intended to remain stable as new funds are added. New contributions increase the per-token redemption value proportionally. The recovery framework, initially announced in April 2026 and reaffirmed in the October 1 update, includes up to 127.5 million USDT from Tether and up to 20 million USDT from strategic partners, though these figures represent maximum commitments rather than already-available balances. Additional funding may flow from daily revenue shares generated by the Velocity trading platform, though the extent of recovery for individual claimants is not guaranteed. A claim window remains open through January 1, 2028, after which unclaimed DFX tokens will be irreversibly burned. The structure separates redemption from secondary market trading, which merely transfers ownership without triggering recovery payouts. This distinction allows holders to either lock in recovery amounts or maintain exposure to potential future gains. The process reflects a broader trend in decentralized finance where protocol failures are addressed through token-based restitution mechanisms, though outcomes depend on sustained participation and funding flows.