Harmony has suffered immense backlash from the crypto community after it passed a proposal to run a hardfork and issue more ONE tokens to reimburse users affected in the recent Harmony bridge hack.
Harmony Proposes Minting Billions of ONE Token
On Wednesday, July 27, Harmony submitted the reimbursement plan on its network’s governance to mint billions of its ONE tokens in order to reimburse the victims of the Horizon bridge hack.
According to the Harmony team, the attack affected 65,000 wallets, which saw around $100 million of user funds stolen.
The first plan involved minting 4.97 billion ONE tokens to compensate all affected users 100% of their lost funds, while the second plan would have seen 2.48 billion ONE to reimburse half of their funds, both over three years.
Harmony Receives Backlash for the Proposal
The proposal has sparked outrage in the Harmony community, with users speaking against the move. One of the most upvoted comments in Harmony’s forum exclaims, “DO NOT MINT MORE!”
Other users have noted that minting the ONE tokens out of thin air would increase inflationary pressure to unsustainable levels, further devaluating the price of ONE, currently trading at $0.0215.
On the Flipside
- Despite initiating a manhunt and offering the hacker $10 million to return the funds, the identity of the hacker remains unknown.
Why You Should Care
Most of the community members are outraged because Harmony’s proposal seeks to protect its treasury at the expense of the entire protocol.
More info about the Harmony bridge hack can be found below:
Harmony’s Cross-Chain Horizon Bridge Suffers $100 Million Exploit
While the hacker remains at large, the hack has been blamed on:
North Korean Hackers to Be Held Accountable for $100M Harmony Hack