The reaction of the community to Nomad’s news has been varied. Put yourself in the shoes of one of the thieves who raided Nomad’s businesses, and an NFT with “no utility” would not be enough to convince you to return hundreds of thousands, if not millions, of dollars in stolen crypto. So, why does Nomad believe this will sweeten the deal? Because it’s not always about the cash.
Metagame has partnered with Nomad to provide NFTs to white-hat hackers as part of its attempts to “recognize activities consistent with a community’s values both big and small.” “By acknowledging the individuals who do those activities, we can incentivize actions that benefit the community,” Metagame founder Brenner Spear wrote in a tweet on Tuesday.
And it looks that Nomad and Metagame’s heartfelt pleas to the cyber-thieves have not gone unnoticed. According to an August 18 blog post, around 20% of the stolen monies have returned to Nomad. That’s more than $37 million, with the majority of it coming from the recovery wallet Nomad had set up for hackers seeking restitution.
What comes next?
Nomad’s technique of retrieving stolen funds may appear foolish to cynics, but it isn’t. Nomad’s actions point to a longer-term strategy for assuring Web3’s success. It all starts with establishing a community based on trust and goodwill. “We appreciate people doing the right thing even if it’s for the wrong cause, and we hope that things like this will encourage more people to do the right thing,” a statement on Nomad’s whitehat prize website stated.
Of course, Nomad does not rely just on ideas to overcome this problem. As stated in its August 18 blog post, Nomad is continuing its efforts to reimburse victims of the hack. Nomad is currently in Phase One of its recovery efforts, collaborating with law enforcement and blockchain forensics organizations to track down black-hat hackers and stolen assets.
Phase Two, which is slated to begin in mid-to-late September, will focus on determining a few ways to refund lost monies to consumers in an equitable manner. Phase Three, which is scheduled to begin soon, will see the reopening of the Nomad bridge, as well as the implementation of a new option for users to “unbridge” monies that have been locked up as a result of the hack.