The recently hacked tokenization platform, Holograph, has unveiled a token-burning process to eliminate one billion illegally minted HLG tokens. The Holograph team stated that this process, which has resulted in the burning of more than 53 million tokens so far, is expected to reduce the total number of tokens in circulation to 10 billion.
Holograph Begins Process to Remove 1 Billion Illegally Minted Tokens, Burns 53 Million HLG
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Holograph Takes Steps to Recover Stolen Funds
Animoca Brands-backed tokenization platform Holograph has unveiled a token burn plan to remove illegally minted HLG tokens from circulation. In an update, the Holograph team revealed that about 800 million HLG remain in circulation, out of the one billion minted by a suspected rogue developer.
The team said roughly 200 million tokens were frozen by centralized exchanges that the attacker used when attempting to cash out. The team added they are recovering the stolen funds through “law enforcement procedures.”
Bitcoin.com News recently reported that an unidentified attacker exploited a vulnerability in the operator contract to mint one billion HLG tokens illegally. The attacker then immediately converted HLG to the stablecoin USDT. The HLG token’s USD value plummeted from around $0.0149 to $0.00296 following the breach.
Holograph Initiates Token Burn Plan to Restore Total Supply to 10 Billion
Meanwhile, Holograph’s June 20 update revealed it had enlisted blockchain security firm Halborn to review a post-mortem of the exploit. Halborn will also provide regular security audits for the Holograph Protocol.
Regarding the plan to restore the circulating HLG supply to 10 billion, the Holograph team said:
At present, there is approximately 800 million HLG in surplus currently in circulation. After extensive discussions with the community, the plan to return the total supply of HLG back to 10 billion has commenced.
As detailed in the recovery update, 53,249,975 HLG have been burned, leaving 946,750,025 HLG remaining. The team says upcoming token burns will be conducted in multiple tranches over time, with the size and timing of each burn varying. After each burn is completed, proof of the on-chain transactions will be made public.
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