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Harmony to mint new tokens to compensate investors

It's been just under a month since the hack on the Harmony blockchain platform.

By Finst News
• 2 min read
Harmony to mint new tokens to compensate investors

It's been a little under a month since the hack on the Harmony blockchain platform. Through a bug in the code, hackers managed to steal about $100 million across multiple cryptocurrencies. A so-called 'whitehat' offer, where the hacker would keep a portion of the amount as compensation for repayment, failed.

Immediate compensation is currently impossible due to a lack of reserves, Harmony writes in a blog post. Instead, the team is proposing two alternative options for the community to vote on. In both cases, a hard fork would be required. After that, the financial damage would be covered by newly generated ONE tokens.

The Harmony community was outraged by the compensation plans. Some fear a loss of value for the ONE token due to inflationary issuance. If the measure goes ahead, it would be similar to central-bank money creation.

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