Harmony Community Outraged by Proposal to Repay $100 Million Hack Victims
Categories: Crypto News US
HarmonyCommunity Outraged by Proposal to Repay $100 Million Hack Victims
Members of the Harmony (ONE) community have reacted angrily toa proposal from the Harmony team to reimburse the victims of last month'sHorizon Bridge hack in which nearly US$100 million in users' assets was stolen.
The proposed scheme would require a hard fork of the blockchainand potentially result in further devaluation of the tokens and more harm forholders, through the mining of billions of new ONE tokens, not from Treasuryfunds.Harmony Team Offers Two Reimbursement Options TheHarmony Team reimbursement offer gives community members two options, theprimary difference between them being how many new tokens will need to becreated.
ONE holders will have the opportunity to vote on the optionof their choice, which will then be implemented by the Harmony team. TheHarmony team claims that issuing new tokens is the best way tocompensate victims, explaining that paying compensation directly from theproject's coffers could jeopardize its existence.
Under the first option, victims of the hack would becompensated 100 percent of their losses, which would require 4.97 billion newONE tokens. The second option is reimbursement of only 50 percent of thevictims' losses, which requires 2.48 billion new tokens. Both options will takethree years to complete, with victims claiming 1/36 of their share of tokensevery month during that period.
The Harmony team says that the slow drip feed of tokens tovictims will “prevent market disruption from a sudden increase in the supply ofa token”. The holders' concerns are justified – for the price of one to riseduring the three years of the proposed reimbursement plan, it would have toovercome the injection of an additional 69 million or 138 million tokens(depending on the option) each month. ,