Harmony to mint and distribute 2 billion tokens to 100 million hack victims

The creators of the platform would distribute ONE tokens as compensation for the victims of its June Horizon bridge hack, according to a new proposal made by the Harmony blockchain network.

Harmony Protocol | Image: Binance

According to a statement released by Harmony on July 26, the refund proposal is a component of the platform's strategy to fairly recompense the affected wallets.

“The Harmony team feels it is important for the overall strength of the ecosystem that harms to impacted wallets are mitigated in a manner that is feasible and most viable for the project,” Harmony said.

Notably, the creators presented two solutions, the first of which projected a 100% repayment with the creation of 4.97 billion ONE, or 138 million tokens per month for three years.

The developers are also considering the idea of launching an anticipated 50% refund that would require the creation of 2.48 billion ONE, or 69 million tokens every month for three years. The idea will be put to a vote between August 1 and August 15.

Both recommendations were based on the asset's $0.2 price, even though there are issues with the increased quantity of ONE tokens.

Given that the level is currently roughly 95% below the all-time high of $0.37, the compensation in this situation will probably stay the same even if the value of ONE declines further.

Prior to the attack, the Harmony, Binance Smart Chain (BSC), and Ethereum blockchains could all be exchanged through the Horizon bridge by users and investors.

A total of $99,340,030 worth of cryptocurrencies were lost as a result of the breach, which was purportedly carried out by the North Korean organization Lazarus and affected around 65,000 wallets and 14 distinct asset kinds.

Harmony further pointed out that the stolen money had a major negative impact on numerous decentralized finance (DeFi) protocols in terms of uncollectible loans.

The trading platform exposed dealers' use of arbitrage opportunities to borrow money against de-pegged stables without having any intention of paying back the borrowed money. A lack of liquidity was caused by the circumstance.

Harmony considers that resolving the problem is essential to gaining the confidence and support of DeFi participants.

The Latest News