Harmony Suggests Paying $100 Million to Hack Victims with ONE Tokens
Refunds Will Be Done In 2 Ways
However, the Harmony team has now suggested paying back its customers. Two possibilities were provided by the developers. The first offers a 4.97 billion ONE token issuance, or 138 million tokens every month over a three-year period, with an expected 100 percent reimbursement. The second suggests a roughly 50% refund. Over the same period, 2.48 billion ONE tokens, or 69 million tokens each month, would be produced.
The refund amount would not change if the ONE price fell more because both ideas are based on the current token price of 2 U.S. cents. From ONE's lifetime peak of 37 cents in October 2021, that figure represents a 95 percent decline.
According to Harmony, "decentralized financing" is used to describe the uncollectible loans that occurred "across a number of Defi lending protocols" in the Harmony ecosystem as a result of the stolen tokens.
Defi Protocols May Stop Supporting Harmony
According to the developers, if these uncollectible loans are not resolved, "certain affected Defi protocols" may decide to stop supporting Harmony on their platforms. 86 million ONE will be created as part of the reimbursement plan and distributed to "certain affected Defi protocols" over the course of the same three years, they added.
On Harmony's governance forum, public voting on the suggestions will open on August 1 and end on August 15. At the time of writing, the community's reactions were largely unfavorable, with people worried about how the price of ONE would be impacted by the increased number of tokens.
The Harmony, Ethereum, and Binance Smart Chain may all be exchanged through the Horizon bridge, along with other assets including tokens, non-fungible tokens (NFTs), and stablecoins.
