Harmony unveils new plan to reimburse $100 million to Horizon bridge hack victims

The Harmony project team unveiled a new plan to compensate victims of the Horizon cross-chain bridge hack for $100 million.

The @harmonyprotocol team would like to update our community and partners on our Horizon bridge asset recovery proposal.

Key Takeaways:

0⃣ — 0% Mint
🤝- Commitment from Foundation Treasury

Read the full announcement here: https://t.co/auW0Cm7Yd9

A 🧵version 👇 pic.twitter.com/miSTZuo2KO

— Harmony 💙 (@harmonyprotocol) September 22, 2022

The initial plan was to carry out a hard fork and issue the necessary amount of native ONE tokens over three years. The plan provided for two options for additional issuance:

• 2.4 billion ONE — to compensate 50% of the losses;
• 4.97 billion ONE — to cover 100% of the losses.

However, users were almost unanimously opposed to the plan due to potential inflationary effects. Harmony said it had listened to validators and the community and abandoned the idea of additional issuance.

“We propose not to issue more ONE tokens and not to alter our tokenomics through a protocol hard fork. Instead, we propose directing treasury funds both to compensate the damages and to development,” the statement says.

The project team added that it would present a detailed description of the plan in the near future.

Following the Horizon attack, the Harmony team proposed a reward of $1 million for the return of the stolen funds. The amount puzzled users, and a crypto trader under the alias Degen Spartan called it “insulting”. As a result, the offer was increased to $10 million.

Elliptic believe that the Horizon attack may have been carried out by Lazarus, a North Korea-linked hacker group. They are also believed to be involved in the Ronin cross-chain bridge attack.

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