They behind the Harmony blockchain project has suggested the minting as high as 4.97 billion price of its native token Someone to compensate victims from the $100 million Horizon Bridge hack in June.
The proposal continues to be met with a lot of backlash from people from the community, with lots of highlighting concerns that this type of large issuance of recent tokens would lead to inflationary pressure around the asset and produce its value lower.
This proposal is disappointing. There’s not one other options. Appears to become either minting more tokens or minting more tokens. When we disagree, there won’t be any disbursement according to your proposal.
— night (@night7576) This summer 27, 2022
In its proposal on Tuesday through the project’s community page, the Harmony team noted that 65,000 wallets across 14 different assets were influenced by the hack and they have “worked tirelessly to brainstorm and develop pathways towards reimbursing” victims.
The Harmony team mentioned that could not offer any solution that leads to immediate reimbursement given “the current condition of Harmony’s treasury,” therefore it offered two options that involve minting several billion ONE tokens using a hard fork towards the Harmony blockchain, which may get to victims from the hack.
The very first option provided to offer an believed 100% reimbursement via 4.97 billion brand new one tokens, as the second item estimates a 50% reimbursement with 2.48 billion ONE tokens more than a three-year period.
They is waiting for community feedback before proceeding forward, but initial responses already seem to be overwhelmingly negative, with many comments around the community page or on Twitter voicing strong concerns using the ideas.
I’ll election no about this 100%. It is not the solution. Use area of the treasury to refund the providers and obtain things are good standing and move ahead. The investors and community shouldnt need to pay for this.
— mcone.one (@mconecrypto) This summer 27, 2022
The city has additionally noted that the similar approach to recovery was utilized by the Terra eco-system following its $40 billion meltdown in May.
Around the community page, user BSKA authored “This is completely garbage, scrap the entire proposal and return to enter board Team!” While CJL noted, “let me have this straight: not sure for days […] and also the proposal you return with is really a LUNA-style hard fork along with a 3-year vest?”
Related: Infamous North Korean hacker group recognized as suspect for $100M Harmony attack
Community member shwaver recommended this proposal will finish up driving builders from the Harmony eco-system:
“You’ve carried this out completely backwards. To be able to afford repayment, you have to first improve a reliable ecosystem e.g. repeg or alternative so projects possess a need to build here, individuals have grounds to create lengthy-term investments, etc.”
“This purely inflationary solution will the opposite–creating an economic incentive to market all ONE now and make elsewhere–while also punting around the repeg,” they added.
In June, the Horizon Bridge towards the Harmony layer-1 blockchain was exploited for $100 million.
Later within the month, they attempted to provide a $a million bounty towards the hacker who exploited the bridge to come back the funds — even though the strategy apparently unsuccessful.
Harmony’s ONE token costs $.02 during the time of writing, having a total way to obtain 13.5 billion tokens, based on Coinmarketcap.
