Members of the Harmony (ONE) neighborhood have actually responded madly to a proposition from the Harmony group to repay victims of last month's Horizon bridge hack in which practically US$100 countless users' properties were taken:
-- Harmony (@harmonyprotocol) July 27, 2022The compensation proposition is published and readily available for feedback. We motivate the #HarmonyONE neighborhood to check out and talk with each other and the core group.
Thank you for your persistence as we work to move on together as ONE.
Link: https://t.co/9q7dlSrAvW
The proposed strategy would see victims reimbursed not from treasury funds however through the minting of billions of brand-new ONE tokens, needing a difficult fork of the blockchain and possibly leading to more devaluing of the token and more losses for holders.
Harmony Team Offers Two Reimbursement Options
The repayment proposition from the Harmony group offers neighborhood members 2 alternatives, the main distinction in between them being the number of brand-new tokens will require to be minted. ONE holders will have the chance to vote on the choice they choose, which will then be carried out by the Harmony group.
The Harmony group declares that releasing brand-new tokens is the very best method to compensate victims, describing that paying payment straight from the job's treasury might threaten its really survival:
We chose versus utilizing the structure treasury in the interest of the durability and wellness of the task, as compensating from the treasury would significantly prevent the structure's capability to support the development of Harmony and its environment.
Harmony group
Under the very first alternative, victims of the hack will be made up for 100 percent of their losses, needing the minting of 4.97 billion brand-new ONE tokens. The 2nd choice is compensation of just 50 percent of victims' losses, needing the minting of 2.48 billion brand-new tokens.
Both choices would take 3 years to finish, with victims needed to declare 1/36 th of their share of tokens monthly over that duration. The Harmony group states a sluggish drip feed of tokens to victims would "avoid market disturbances from an abrupt boost in supply of ONE tokens".
Harmony's existing overall token supply is 13.1 billion, indicating that by the end of the compensation plan its supply will have pumped up by in between 19 and 38 percent.
Community Not Impressed
Unsurprisingly, the Harmony neighborhood is usually not impressed with this proposition. Many holders are worried about the enormous inflation of supply and the result this will have on the worth of their financial investment:
-- DOGE_Pilot Matt (@DogecoinPilot) July 27, 2022By minting more tokens to payback those effected by the hack your going to drive the cost down for others in the neighborhood.
More supply generally implies lower rates.
Ser @stse @lijiang2087 @harmonyprotocol$ ONE, kindly listen to the OGs neighborhood. We're here asking to be heard. We assisted you through the hard times and commemorated along the method on great times. Please supply us another option instead of this "printer goes brrrr" deal. Thanks. pic.twitter.com/KUHFfKo6L1
-- USS Harmony Validator (@ussharmony) July 27, 2022
Holders' issues are most likely warranted-- for the rate of ONE to grow throughout the 3 years of the proposed repayment plan, it would need to get rid of the injection of an extra 69 million or 138 million tokens (depending upon the alternative) each and every month.
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