Harmony Decides Not to Mint More ONE Tokens for Horizon Bridge Hack Compensation

Blockchain project Harmony Protocol (ONE) has shared an update on its compensation plan following the Horizon Bridge hack that occurred in June 2022.

The incident began on June 24, 2022, amidst a wave of cross-chain hacks, with Harmony’s Horizon Bridge also falling victim, resulting in an estimated loss of $100 million. There were reports suggesting that the notorious North Korean hacker group, Lazarus Group, was behind the attack.

To restore user trust and the project’s credibility, Harmony initially proposed a $1 million reward for information leading to the Horizon hack perpetrators and a compensation plan of 4.97 billion ONE tokens for affected users. However, the compensation process required Harmony to mint additional ONE tokens, increasing the token supply and potentially putting downward pressure on ONE’s future price. Consequently, most investors opposed the proposal at that time.

On September 23, 2022, after thorough consideration of community feedback, the Harmony team announced it would halt the proposal, meaning that Harmony will not mint any additional ONE tokens or implement a hard fork at this time.

Instead, the team will use the project's existing treasury to address the issue.

“We are committed to building Harmony for the long term, leveraging the unique scalability advantages of the blockchain to realize Harmony’s vision of network adoption and ecosystem development. To achieve this, we plan to allocate our treasury to grow, making Harmony the best-scaling network possible and addressing any issues,” the team stated.

Harmony also promised to provide a more detailed update in the coming days and ensure the proper allocation of funds for the recovery process to affected users.

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We would like to thank the @recoveryonefdn team for their extraordinary efforts and continued support in coordinating proposals and engaging with the community.

— Harmony ? (@harmonyprotocol) September 22, 2022