Harmony Blockchain Updates The Plan For Recovering From The Horizon Bridge Attack

Following the $100 million Horizon Bridge hack in June, the Harmony Blockchain team updated its community and partners on its asset-recovery proposal, which aims to protect Harmony’s blockchain without creating new tokens.

With a cross-chain approach and an efficient proof-of-stake (EPoS) sharded network, Harmony seeks to become the Layer 1 trustless bridge for all chains.

The breach used a cross-chain bridge to move assets between the Harmony and Ethereum blockchains called the Horizon Ethereum Bridge. The attackers took $100 million worth of BUSD, USDC, ETH, and WBTC assets before exchanging all of the tokens for ETH and using the money as collateral.

Harmony blockchain made an unsuccessful $1 million bounty offer to recover the stolen money

The core team of Harmony then put forth a hard fork to create billions of new Harmony ONE tokens as a way to compensate hack victims.

The core team claimed at the time that the funds were for expansion and ecosystem objectives and opposed using the foundation treasury. On the governance forum, the Harmony community appeared to be against this idea and worried about the inflationary effects of such a mint. The suggestion was later taken back.

In the new proposal, announced today via a blog post, the Harmony team said that after listening to Harmony’s validators and community, it shared the goal of “preserving the foundation of the Harmony blockchain with 0% minting,” and now proposed to use the foundation treasury for recovery funds.

“We propose not minting more ONE tokens nor changing our tokenomics with a hard fork of the protocol. Instead, we propose deploying our treasury towards both recovery and development.”

Harmony added that in coming days it would provide a more detailed update outlining the mechanisms to deploy the funds allocated for recovery.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Annie

CoinCu News