The brains behind the Harmony blockchain project have suggested that victims of the $100 million Horizon Bridge hack in June receive compensation in the form of up to 4.97 billion worth of its native cryptocurrency, ONE.
And contrary to predicted expectations, community members have vehemently opposed the proposal, with many highlighting concerns that such an ample supply of new tokens will result in inflationary pressure on the asset and drive its value down.
On July 26, the Harmony team announced its proposal via the project's neighborhood webpage, expressing that the theft affected 65,000 wallets across 14 different assets and that they've worked diligently to go through and create ways toward recompensating victims.
Given the current predicament of Harmony's treasury, the Harmony team claimed it could not offer any solution that ends up in immediate reimbursement. Instead, it offered two options, one of which involved creating a rigid fork to the Harmony blockchain to pave the way to several billion ONE tokens that would then be distributed to hacking victims.
The first option offered to deliver an expected 100% repayment through 4.97 billion new ONE tokens, while the second option had a contrasting essence which predicts a 50% refund with 2.48 billion new ONE tokens over three years,
The team is seeking community feedback before proceeding. Still, first reactions look highly damaging, with most comments on the local web page or Twitter stating severe problems with the proposals.
Myriad of comments filled the community's web page, expressing unique opinions of people on the proposal. While some criticized it, others said indifference.
Yufei wrote, “The reimbursement should be at least based on the current market value each month and not .02. So if One goes to $1. You just reimbursed $4 billion+ to those that lost $100 million. This doesn't make any sense. Also, least should use treasury for some amount and all on the community!”
mcone.one said, “will vote no on this 100%. It's not the answer. Use part of the treasury to refund the providers and get everything in good standing, and move forward. The investors and community shouldn't have to pay for it.
Additionally, the community has noted that the Terra eco-system used a similar restoration strategy after its $40 billion softening down in May. Harmony has definitely struck a hornet's nest with this recent development. How do you think they can manage this? Please share your thoughts with us in the comment section.
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