Affording $98 Million in Cryptocurrency for Free: Harmony’s Bold Plan

billions of billions – After being robbed 98 million dollars in one clickthe Harmony protocol then offered hackers 1 million dollars in exchange of the remaining loot. The hacker’s response was therefore not long in coming. The hack’s $100 million eventually disappeared, swept away via Tornado Cash. Worn down by bear markets, and faced with the necessary need for development, Harmony tries to find a way out and proposes a governance vote.

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Harmony: ONE, the solution

The developers had been clear. Harmony’s cash will not be used to repair the Horizon bridge, linking the Harmony blockchain to Ethereum blockchains or the Binance Smart Chain.

“The Harmony team believes it is important to the overall strength of the ecosystem that harm to affected wallets is mitigated in a way that is most feasible and viable for the project. »

Source Harmony: The block

Harmony must all the same repair the damage transmitted to its users. It has therefore precisely decided to consult them around a governance vote. The solution would then go through theONE token issuance, native cryptocurrency of the protocol. It would cover loans related to bridge piracy and therefore make the protocol ecosystem more serene. Two solutions are available to voters:

  • A refund of 100% of funds stolen which includes the creation of 4.97 billion ONE, or 138 million tokens per month over three years, or,
  • Reimbursement at 50% stolen funds of 2.48 billion ONE, or 69 million tokens per month over the same period.

The ONE currently costs 0.02 euro cent. It is therefore a long way from its peak of 37 cents reached in October 2021. Combined with a hard forkthis move met with hostility from the community.

Visualization of the number of unique users per month of the Harmony bridge
Number of Harmony ERC20 bridge users since launch (source: Dune Analytics, @sendmeat)

However, it should be noted that in fact and in daily use, Harmony remains a micro-niche within a niche: in the month of June 2022, according to data from Dune Analytics, only 303 unique users interacted with the bridge Harmony-Ethereum…and the trend was clearly still down for July.

the community choice will therefore be scrutinized carefully. The number of tokens created will be a factor to consider for the future and especially the course of the cryptocurrency. Appointment is made, the community will be able to vote from August 1. Voting will close on August 15.

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