Developers behind the famous blockchain network Harmony proposed using ONE tokens to make up for the losses suffered from the hack of the Horizon bridge in June. According to the developers, the Harmony team felt it important that the damages caused by the hack should be mitigated in every feasible manner. The Horizontal bridge hack led to a loss of almost $99,340,030 across 65000 wallets and 14 different asset types. Harmony posted this proposal on the protocol’s governance forum earlier this month. The Harmony team believes it’s critical for the ecosystem’s general health that damages to impacted wallets are effectively reduced.
What are the options?
The developers of Harmony presented two options to mitigate the impact of the loss. In the first option, developers proposed almost cent percent reimbursement by minting 4.97 billion ONE. This equates to 138 million tokens over the next three years. Another option is to offer a 50% reimbursement by minting 2.48 billion ONE, or 69 million tokens monthly over the same amount of time.
The refund amount would not change if the ONE price fell more because both ideas are based on the current token price of 2 U.S. cents. From ONE’s lifetime peak of 37 cents in October 2021, that figure represents a 95 percent decline.
On Harmony’s governance forum, public voting on the suggestions will extend from August 1 to August 15.
Harmony stated that it decided against using treasury cash to pay back customers because doing so would be detrimental to the project’s long-term viability and health.