Harmony plans rollback, wiping 109,000 transactions after ONE exploit

Harmony Network has decided to reverse 109,000 transactions following a security exploit that led to the creation of fraudulent ONE tokens. This move follows a similar dispute involving Ravencoin, which also had to roll back its blockchain after an exploit that minted fake tokens.

Harmony's decision to rollback the blockchain comes after an investigation traced nearly all the forged ONE tokens to specific wallets or service boundaries. The network plans to revert to blocks recorded on August 11, discarding more than 109,000 transactions that were confirmed after their chosen checkpoint.

The affected window includes 109,126 regular transactions and 315 staking transactions. Harmony states that selectively restoring transactions presents risks, as balances, contract states, nonces, and other conditions would vary on the replacement chain. As a result, the network will generate new blocks from the next heights using replacement databases.

The exploit and subsequent rollback dispute put Harmony in the same category as Ravencoin, as both networks are grappling with the aftermath of exploits that created forged tokens. Ravencoin faced a similar situation earlier this year when a consensus flaw was exploited, leading to a potential three-day blockchain reorganization. Mining pools controlling most of Ravencoin's hash rate began building a competing chain to reverse previously confirmed transactions.

The market cap of the forged ONE tokens has been estimated at roughly $10.8 million, according to CoinGecko data. Harmony's rollback decision puts it in the same league as Ravencoin, as both networks are now seeking to reverse already confirmed blockchain activity following an exploit.