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Harmony Proposes To Issue 4.97 Bln Tokens To Compensate The Victims Of The Hacker Attack

27 July 2022 12:54, UTC
Anna Martynova

The Harmony blockchain team has proposed issuing up to 4.97 bln ONE tokens to compensate victims of the $100 mln Horizon Bridge hack. In their proposal, posted Tuesday on the project's community page, the Harmony team noted that the hack affected 65,000 wallets across 14 different assets, and that they are working tirelessly to develop ways to reimburse victims.

The Harmony team has stated that they cannot offer any solution that will result in an immediate refund given the current state of the Harmony treasury, so they have come up with two options which involve issuing several billion ONE tokens via a hard fork of the Harmony blockchain.

The first option assumes a recovery of approximately 100% from 4.97 bln new ONE tokens, and the second option involves a 50% recovery from 2.48 bln ONE tokens over a three-year period. The proposal was met with backlash from community members, many of whom expressed concern that such a large issuance of new tokens would put inflationary pressure on the asset and reduce its value.

Image: The Market Periodical