Harmony Community Strongly Opposes The Decision To Mint $4.97B ONE Token For Compensation
The Harmony team has proposed mining ONE native tokens worth up to $4.97 billion to compensate victims of $100 million Horizon Bridge hack. The production is receiving vehement opposition from the community.
Harmony’s New Proposal
The team behind the Harmony blockchain project has proposed the minting of up to 4.97 billion worth of its native token ONE to compensate victims of the $100 million Horizon Bridge hack in June.
The proposal has been met with a significant amount of backlash from members of the community, with many highlighting concerns that such a large issuance of new tokens would result in inflationary pressure on the asset and bring its value down.
In its proposal the project states “worked tirelessly to brainstorm and develop paths towards reimbursing” to refund 65,000 wallets across 14 different assets that were affected by the hack.
So they offered two options that involve minting several billion ONE tokens via a hard fork to the Harmony blockchain, which would be given to victims of the hack.
The first option offered to provide an estimated 100% reimbursement via $4.97 billion new ONE tokens, while the second option estimates a 50% reimbursement with 2.48 billion ONE tokens over a three-year period.
Negative reaction from the community
The team is awaiting community feedback before proceeding forward, but initial responses already appear to be overwhelmingly negative, with most comments on the community page or on Twitter voicing strong concerns with the ideas.
The community has also noted that a similar method of recovery was employed by the Terra eco-system following its $40 billion melt down in May.
“This is absolutely garbage, scrap the whole proposal and go back to the drawing board Team!”On the community page, user BSKA wrote
The Harmony layer-1 blockchain’s Horizon Bridge was used to steal $100 million in June.
The team attempted to offer a $1 million reward to the hacker who used the bridge to steal the money later in the month, but the plan appeared to fail.
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