Key Takeaways
- Concord has proposed a reimbursement plan to compensate the victims of the current $100 million Horizon bridge exploit by inflating the ONE provide.
- Particularly, it has prompt initiating a hardfork to mint new ONE tokens that might be used to compensate victims.
- Many group members have pushed again on the proposal, taking concern with the crew’s “take it or depart it” strategy.
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Weeks after an attacker was in a position to steal roughly $100 million from Concord Protocol’s cross-chain bridge, the Layer 1 mission has shared a controversial proposal to reimburse affected customers.
Concord Makes Reimbursement Proposal
Concord Protocol has shared a reimbursement proposal to compensate customers affected by its $100 million exploit in June, however the group isn’t proud of it.
Based on the reimbursement plan submitted to the community’s governance discussion board early Wednesday, the Concord crew has proposed a hardfork to mint extra ONE tokens that might be used to compensate customers affected by the current exploit on its cross-chain bridge. “The Concord crew has labored tirelessly to brainstorm and develop paths in the direction of reimbursing those that have been impacted by the current hack of the Horizon bridge,” reads the governance proposal, giving customers two choices to vote for.
The primary possibility proposes a 100% reimbursement by minting 4.97 billion ONE tokens, roughly sufficient to make all affected customers complete based mostly on ONE’s present $0.20 market worth. The second possibility suggests solely a partial reimbursement by minting 69 million ONE tokens, which might cowl about half of the sufferer’s whole losses on the token’s present worth. Each decisions recommend progressively minting the brand new tokens over three years to forestall inflating the availability of ONE too rapidly. Increasing on why it opted for this answer, the Concord crew mentioned:
“We determined towards utilizing the inspiration treasury within the curiosity of the longevity and wellbeing of the mission as reimbursing from the treasury would drastically hinder the inspiration’s means to assist the expansion of Concord and its ecosystem. Concord basis is dedicated to proceed supporting Concord for years to return and plans to order the inspiration tokens to facilitate this.”
Nonetheless, the proposal has acquired overwhelming pushback from the Concord group. One of the upvoted feedback within the thread exclaimed “DO NOT MINT MORE!” and argued that inflating the ONE provide would “screw those that are staking.” One other person complained that that they had waited “2 weeks for this shitty proposal & no repeg,” adding {that a} hardfork would kill the chain’s already “small likelihood” of survival.
A lot of the resentment appears to heart on Concord’s plan to guard its treasury whereas asking token holders to bear the brunt of the hack below the premise of needing funds to develop the mission. Some group members additionally didn’t appear to love Concord’s “take it or depart it” strategy. “Within the occasion of failure to acquire required validator participation, we are going to resort to “no reimbursement,” the crew mentioned within the proposal. “How ought to I take a look at this assertion? A menace?” one individual replied.
Concord’s cross-chain Horizon bridge was exploited for about $100 million on June 24 after a hacker reportedly gained entry to the majority of the non-public keys controlling Concord’s multi-signature pockets (Concord didn’t verify how the incident occurred). The mission initiated a “international manhunt” following the incident, alerting exchanges, regulation enforcement businesses, and blockchain evaluation corporations. It additionally provided the hacker a $10 million bounty to return the stolen funds. Regardless of all of its efforts, the mission has didn’t determine the hacker or get better the stolen funds.
Disclosure: On the time of writing, the writer of this text owned ETH and a number of other different cryptocurrencies.
