According to a new proposal made by the Harmony blockchain network, the platform’s developers plan to distribute ONE tokens as compensation to the victims of the June Horizon bridge hack.
A statement released by Harmony on July 26 revealed that the refund proposal is a component of the platform’s strategy to fairly compensate the affected wallets.
The developers presented two solutions, the first of which projected a 100% repayment with the minting of 4.97 billion ONE, or 138 million tokens per month for three years.
The developers are also considering launching an anticipated 50% refund, which would require the minting of 2.48 billion ONE tokens, or 69 million ONE tokens every month for three years. The proposal 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 token. Given that the level is currently roughly 95% below the all-time high of $0.37, the compensation in this situation will likely remain unchanged even if the value of ONE declines further.
Before the platform was hacked, the Horizon bridge allowed users and investors to exchange their assets via the Harmony, Binance Smart Chain (BSC), and Ethereum blockchains.
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 approximately 65,000 wallets and 14 distinct asset classes.
Furthermore, Harmony pointed out that the stolen money had a significant negative impact on numerous decentralized finance (DeFi) protocols due to unrecoverable loans.
The trading platform exposed dealers’ use of arbitrage opportunities to borrow money against de-pegged stables with no intention of paying back the borrowed money. Harmony believes that resolving the problem is essential to gaining the confidence and support of DeFi participants.
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