<p><span style="font-weight: 400;">The Harmony protocol team </span><a href="https://medium.com/harmony-one/horizon-bridge-recovery-plan-1685556445d8"><span style="font-weight: 400;">announced</span></a><span style="font-weight: 400;"> an update for its community and partners regarding its asset-recovery proposal, intending to preserve Harmony’s blockchain without minting new tokens, following the $100 million Horizon Bridge hack in June.</span></p> <p><span style="font-weight: 400;">Harmony is an effective proof-of-stake (EPoS) sharded network with a cross-chain model that aims to make it the Layer 1 trustless bridge across all chains.</span></p> <p><span style="font-weight: 400;">The </span><a href="https://www.theblock.co/linked/153973/harmonys-cross-chain-bridge-hit-by-eth-theft-worth-nearly-100-million"><span style="font-weight: 400;">hack</span></a><span style="font-weight: 400;"> exploited the Horizon Ethereum Bridge — a cross-chain bridge to migrate assets between the Harmony and Ethereum blockchains. The attackers </span><a href="https://medium.com/harmony-one/harmonys-horizon-bridge-hack-1e8d283b6d66"><span style="font-weight: 400;">stole</span></a><span style="font-weight: 400;"> BUSD, USDC, ETH, and WBTC assets worth $100 million, before swapping all tokens to ETH and proceeding to </span><a href="https://www.theblock.co/post/154357/hacker-begins-laundering-funds-from-the-100-million-harmony-bridge-attack"><span style="font-weight: 400;">launder the funds</span></a><span style="font-weight: 400;">.</span></p> <p><span style="font-weight: 400;">Harmony offered a </span><a href="https://www.theblock.co/linked/154243/harmony-offers-1-million-bounty-for-return-of-stolen-funds"><span style="font-weight: 400;">$1 million bounty</span></a><span style="font-weight: 400;"> to return the stolen funds, to no avail. Harmony’s core team then proposed a hard fork to </span><a href="https://www.theblock.co/post/159864/harmony-proposes-minting-billions-of-one-tokens-to-pay-back-hack-victims"><span style="font-weight: 400;">mint billions</span></a><span style="font-weight: 400;"> of new Harmony ONE tokens as part of a plan to reimburse hack victims.</span></p> <p><span style="font-weight: 400;">At the time, the core team argued against spending its foundation treasury, saying the funds were for growth and ecosystem plans. The Harmony community appeared unhappy with this proposal on the </span><a href="https://talk.harmony.one/t/reimbursement-proposal-horizon-incident/20665/2"><span style="font-weight: 400;">governance forum</span></a><span style="font-weight: 400;">, concerned at the inflationary impact of such a mint. The proposal was subsequently withdrawn.</span></p> <p><span style="font-weight: 400;">In the new proposal, announced today via a </span><a href="https://medium.com/harmony-one/horizon-bridge-recovery-plan-1685556445d8"><span style="font-weight: 400;">blog post</span></a><span style="font-weight: 400;">, 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.</span></p> <p><span style="font-weight: 400;">“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.”</span></p> <p><span style="font-weight: 400;">Harmony added that in coming days it would provide a more detailed update outlining the mechanisms to deploy the funds allocated for recovery.</span></p><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>