Harmony Plans to Mint billions of New ONE Tokens for Reimbursement
Aaron Limbu Jul 28, 2022 08:25
Harmony is planning a hard fork to mint billions of new harmony (ONE) tokens to reimburse victims of its bridge hack last month.
Harmony is planning a hard fork to mint billions of new harmony (ONE) tokens to reimburse victims of its bridge hack last month.
Harmony, a proof-of-stake (PoS) blockchain, uses ONE token as the native asset to pay for transaction fees on the network. The blockchain claims to be faster and cheaper than Ethereum.
In June, $100 million worth of crypto assets were stolen by a hacker. The assets were kept securely on the Harmony-run Horizon bridge on Ethereum.
Victims of the hack have been asking for a refund since the hack.
According to The Block, the team suggested to the community on Wednesday to fork the Harmony network and mint a fresh supply of tokens to initiate the reimbursement process. “This proposal will require a hard fork of the Harmony blockchain as it will increase the supply of ONE token,” the proposal stated.
The community was given two options to decide how many tokens to mint:
The first option is to mint 2.48 billion ONE tokens ($49.6 million), which the team claimed would be enough for 50% compensation to victims at the current market price of $0.02 per ONE token.
The second choice is to mint 4.97 billion ONE tokens ($99 million), enough for full compensation to victims.
However, the community is reportedly dissatisfied with the proposal, concerning the price of the token would be undermined if the total supply of token increase. Currently, the total supply of the token in the protocol is around 13.1 billion units. The supply might be increased between 19% and 38 % if the proposal is approved, according to the report.
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