Harmony Reveals Reimbursement Proposal For Exploited Victims

Harmony Reveals Reimbursement Proposal For Exploited Victims
  • The attack had affected 65,000 wallets across 14 distinct assets.
  • A 100 percent refund was proposed with 4.97 billion new $ONE tokens.

As a way to make amends for the $100 million Horizon Bridge attack, the Harmony blockchain project’s leadership has suggested minting up to 4.97 billion ONE native tokens. Some members of the community have expressed worry that a huge number of new tokens will lead to inflationary pressure on the asset and lower its value, which has led to a substantial amount of pushback.

On July 26, the Harmony team announced through the project’s community page that the attack had affected 65,000 wallets across 14 distinct assets and that they had “worked tirelessly to brainstorm and develop paths towards reimbursing” victims of the breach.

Overwhelmingly Negative Response

Due to “the current state of Harmony’s treasury,” the team indicated that it couldn’t provide a rapid solution, so it suggested two solutions that included minting a few billion ONE tokens through a hard fork to the Harmony blockchain.

A 100 percent refund was proposed with 4.97 billion new ONE tokens in the first option, while a 50 percent reimbursement was proposed with 2.48 billion new ONE tokens over three years.

Awaiting community input before moving further, the team has already received an overwhelmingly negative reaction, with most comments on either the community website or on Twitter indicating serious issues with the concepts. The Harmony layer-1 blockchain’s Horizon Bridge was compromised for over $100 million in June.

At some point after that month, the team sought to offer a $1 million reward to the hacker who had exploited the bridge and recover the funds, but that plan seemed to fail.

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Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.