One of the projects affected by cryptocurrency hacking the most this year is the Harmony (ONE-USD) network. One of the most notorious hacker organizations in the world taking control of $100 million in assets adds salt to the wound caused by the bear market catastrophe. However, developers are encountering resistance as they work to patch things up. Is the solution to the project’s problem to produce more ONE crypto?
In terms of hacks, the first half of 2022 has been terrible. This estimate of $1 billion in stolen funds from the cryptocurrency industry is conservative. If the sector wants to win over both the public and the government, this issue must be resolved right away.
One of the worst hacks of the year is the one that affected Harmony. Hackers used a bridge vulnerability to steal $100 million from the project during a June attack on the network. These assets included Bitcoin (BTC-USD), many stablecoins, and Ethereum (ETH-USD).
As if the attack itself weren’t dramatic enough, the perpetrator brings even more drama to light. Lazarus Group, a hacking group, has been recognized by security experts as being responsible for the attack. The North Korean government sponsors the Lazarus Group, a North Korean organization. It carries out extensive blockchain hacking and makes use of the bitcoin that is taken to finance North Korea’s nuclear program.
The Harmony breach brings to an end a year-long precipitous decline in value for the ONE cryptocurrency. Since January, the coin has lost nearly 90% of its value, falling from 36 cents to its current value of 2 cents. Harmony Network Proposes Controversial Idea to Mint New ONE Crypto
The Harmony developers are currently working to put the parts back together in an effort to at least partially recover the losses. The plan that these developers are putting out to investors is, however, proving to be very unpopular.
What can be done to make up for the numerous Harmony users who were harmed by the hack last month? Developers are currently considering creating a ONE cryptocurrency mint. In order to make up for the loss, they would like to distribute the extra tokens to the hacker’s victims.
The development team’s two ideas both offer ONE coins as compensation. The first plan calls for developers to produce approximately five billion ONE over the course of three years and distribute the coins to victims, who would then receive a 100% payout to the 65,000 wallets impacted by the hack. In the second proposal, developers would receive a 50% reimbursement over a three-year period, earning them almost to 2.5 billion ONE.
The network admits that these suggestions will aid in its own recovery from difficulties with decentralized finance (DeFi) platforms. The Harmony developers are concerned that if they don’t do this, the network would miss out on future opportunities with DeFi projects. A portion of the ONE coined would be donated to DeFi pools in the sectors of the economy harmed by the hack.
Investors are voicing their opinions ahead of the voting period, which begins on August 1. Naturally, producing more tokens puts ONE coin values in even greater jeopardy while drastically reducing the overall supply of 12 billion tokens. Investors want the network to utilize treasury funds to compensate victims because they feel that they shouldn’t have to endure further losses.