Today we’re announcing that FreshCut is ending its partnership with Penta Labs Ltd (the issuer of the blockchain asset FreshCut Diamonds, “FCD”) and removing the integration of FCD from the FreshCut platform. The FreshCut platform and company will no longer support FCD or blockchain development.
In the next month, a new version of the FreshCut app will be released with an updated experience that prioritizes gaming communities, rich content, and creators.
Penta Labs is implementing a cash redemption and recovery process for May 2022 launch participants and current FCD holders. If you participated in the May 2022 launch event and/or currently hold FCD, please see this announcement from Penta Labs, which includes redemption and recovery instructions and key dates.
Why is FreshCut doing this?
FreshCut’s mission is steadfast: helping gaming creators and communities grow and thrive through a dedicated content platform and creator-led economics and revenue share. In achieving our mission, we prioritize trust, safety, and stability for our community, and as a result, we are making the difficult decision to part ways with the web3 aspects of the business. Above all else, we believe in building and maintaining a trustworthy and safe environment for our users and community.
Context: 2022 featured declining economic conditions, and was also an extremely disheartening year for crypto as headlined by bad actors and extraordinary fraudulent events including the fall of FTX, Luna, and many others. Consumers require trust, safety and stability at the highest standard, and in our view, the web3 industry has not reached this standard yet. Currently, the concept of ‘crypto’ is turbulent and can be worrisome. As a result, we are removing this source of doubt from the FreshCut ecosystem, so all current and future users can participate in the community, engage, and have fun worry free.
With this said, we believe that not all of ‘crypto’ is bad. We believe that web3 has enormous promise for individual empowerment and digital ownership - and we support these principles. We will be devoting our time and resources on non-web3 initiatives and products for our community of gaming creators and fans. There is still much to achieve and accomplish with the FreshCut community.
What do FreshCut users with in-app currency OR FCD in the FreshCut in-app wallet need to do?
1. For users that desire to keep the in-app currency without blockchain capability, no action is needed. In-app currency will continue to retain the same effective value and functionality as before, but without the ability to export as a blockchain token. For example, if you have $10 of FreshCut Diamonds in-app, you still have access to $10 of FreshCut Diamonds to use on the platform including tipping, Partner payouts and more.
2. For users that desire to export their in-app currency for blockchain FCD, you will have 12 Days starting on January 19, 2023 6PM PST to (i) export in-app currency for blockchain FCD or (ii) import blockchain FCD (that aren’t in the app) into the FreshCut app in exchange for in-app currency. After January 31, 2023 5PM PST, the in-app wallet and import/export functionality will be removed.
Users with FCD in the in-app non-custodial FreshCut wallet - you will need to import your secret recovery phrase into a new, non-FreshCut wallet (eg. Metamask) in order to view and access your FCD token balance. Your secret recovery phrase, which only you the owner can ever access, will be accessible in the FreshCut app for 90 days after the in-app wallet is removed. Make sure to record and save this phrase securely within the allotted time period — seed phrases will not be recoverable after this process is complete.
FreshCut disclosure regarding Penta Labs’s funding, operations and recovery process:
FreshCut and the FreshCut Team are not participating in Penta Labs’s recovery process, have not sold any granted tokens (including FCD), and have not and will not receive any cash remuneration from Penta Labs. For clarity, the company team’s FCD pool is still under a 1 year lockup and will be burned without remuneration. Furthermore, FreshCut is recognizing a multi-million dollar loss on its investments into developing blockchain related software and products.
Separately, Penta Labs deployed $2.1MM against token development, marketing, exchange partnerships, and operations. Penta Labs is prioritizing paying out the remaining $3.4MM of USDC (minus recovery administration, operations and legal fees) to initial FCD token purchasers (both locked and unlocked) and current FCD holders. Please refer to the Penta Labs article here for further details.
Timeline of Key Dates:
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What’s Next for FreshCut?
FreshCut isn’t going anywhere. We have a passionate team who are dedicated to building for the next stage of the business and community.
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