Harmony’s Compensation Plan Upsets Hack Victims

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Harmony Protocol announced on Wednesday a refund plan for wallets affected by the US$100 million hack on the Horizon cross-chain bridge last month, which was met with mostly negative feedback.

See related article: North Korea allegedly responsible for Harmony Horizon hack

Quick Facts

  • The refund is made with Harmony’s ONE cryptocurrency, monthly over a three-year period. Harmony explained that immediate compensation is difficult due to the restrictions on his treasury.

  • The proposal requires a hard fork of the Harmony blockchain to increase the supply of ONE tokens, Harmony wrote in its announcement to the community.

  • Harmony gave two options for compensation, one is an estimated 100% redemption with a coin of 4.97 billion ONE tokens while the second option is to TBEN 2.48 billion ONE tokens for an estimated 50% redemption .

  • The community reception has been overwhelmingly negative – “Minting more ONE? the supply is already too high, increasing more will hurt tokenomics further,” noted a user from the Harmony community.

  • 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.

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See related article: Are we helpless against attacks on blockchain bridges?