As the Cardano Vasil Hard Fork date nears, another fork - the Harmony One coin fork - could soon mint new ONE.
After losing millions in an attack, blockchain network Harmony has announced its plan to mint 4.97 billion ONE tokens to compensate hack victims.
The proposal comes a month after the network endured a hack that resulted in Harmony losing nearly $100 million.
Harmony One Proposes Minting 4.97 Billion ONE To Reimburse Hack Victims
Harmony is back again with a reimbursement plan that includes compensating hack victims by minting additional ONE tokens.
Citing the limited state of the Harmony Treasury, the plan includes minting 4.97 billion ONE tokens to pay victims. This equates to 137,972,264 each month.
Impacted wallets will claim their tokens every month for a span of three years. The proposal explained:
The Harmony team feels it is important for the overall strength of the ecosystem that harms to impacted wallets is mitigated in a manner that is feasible and most viable for the project.
The second repayment option proposed by the network includes an estimated 50% reimbursement that includes 2.48 billion ONE. Again, this would be issued over time.
However, holders have pushed back against the minting proposals, frustrated at the inflationary tactic that could devalue their own holdings, based on a hack that they were not responsible for.
Harmony's Horizon Bridge is considered one of the leading bridges to conduct cross-blockchain transactions. The bridge is used extensively by users to exchange and transfer assets like NFTs, stablecoin, and cryptos from one place to another.
- Read More: Crypto Ban: Where Is Crypto Banned?
Harmony Horizon Bridge Hack
A month ago, the Harmony network had undergone a malicious cyber attack that resulted in the network losing nearly $100 million worth of consumer assets.
The hacker had reportedly exploited a vulnerability in the network and had later siphoned away funds close to $100 million.
According to blockchain analysis firm Elliptic, the hacker had stolen a variety of cryptocurrencies. These included Ethereum, Binance Coin, Tether, USD Coin, and DAI. Sharing the news of the hack via Twitter, Harmony shared that the firm is now working with multiple cyber securities partners, exchange partners, and the FBI to retrieve the funds.
Inflationary tactics or new mints are not a novel concept in crypto, although their reasoning does vary. Bitcoin, for example, is still growing until it reaches its cap of 21 million. Meanwhile, Luna 2.0 was a completely fresh mint after the Luna crypto crash.