Harmony Protocol announced on Wednesday a reimbursement plan for wallets affected by the US$100 million hack on its Horizon cross-chain bridge last month, which was met by mostly negative feedback.
See related article: North Korea said to be responsible for Harmony Horizon hack
Fast facts
-
The reimbursement will be with Harmony’s ONE cryptocurrency, distributed monthly over a three-year period. Harmony explained that immediate compensation is difficult due to the constraints on its treasury.
-
The proposal requires a hard fork of the Harmony blockchain for increasing the supply of ONE tokens, Harmony wrote in its announcement to the community.
-
Harmony gave two options for compensation, one is an estimated 100% reimbursement with a minting of 4.97 billion ONE tokens, while the second option is to mint 2.48 billion ONE tokens for an estimated 50% reimbursement.
-
The reception from the community is overwhelmingly negative — “Minting more ONE? already the supply is too high, increasing more will further hurt the tokenomics,” one Harmony community user commented.
-
Last month, blockchain analytics firm Elliptic claimed that North Korea’s state-backed hacker group Lazarus was behind the attack on Harmony’s Horizon bridge.
See related article: Are we helpless against attacks on blockchain bridges?
