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Harmony announce updated recovery plan after Horizon Bridge attack

by Chief editor

Harmony announced an updated recovery plan after the $100 million Horizon Bridge hack in June.

Harmony originally offered to mine billions of ONE tokens to compensate the victims of the hack, but has now introduced an alternative plan using treasury funds.

Harmony is a Tier 1 blockchain that uses sharding and Effective Proof-of-Stake for scalability, security and decentralisation.

In June, attackers hacked the Horizon Ethereum Bridge, a crosschain bridge for asset migration between Harmony and Ethereum blockchains, and stole $100 million worth of BUSD, USDC, ETH and WBTC assets before exchanging all tokens for ETH and moving them to their wallets and mixing services.

Harmony offered a $1 million reward for the return of the stolen funds, but the offer was not accepted. The core Harmony team then proposed a hard-fork and a few billion new Harmony ONE tokens to be minted as part of a plan to compensate victims of the hack.

At the time, the core team opposed the spending of the fund’s treasury, arguing that the funds were for the development of the ecosystem. The Harmony community did not like the team’s proposal and it was withdrawn.

In a new proposal, the Harmony team suggested using the fund treasury to recoup the lost funds.

“We propose not to mine more ONE tokens or change our tokenomics with a hard-fork protocol. Instead, we propose to allocate funds from our coffers to reimbursement and development.”

The Harmony team will provide more details on how the funds will be distributed in the coming days.

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