Harmony’s Minting Proposal To Repay Victims Receives Backlash
Recently, the Harmony team proposed that the platform should mint over 4.97 billion ONE. ONE is the native token of the platform.
The aim of minting the tokens is to compensate those who lost their funds during the Horizon Bridge attack. According to reports, the hacker siphoned over $100 million through the bridge.
Community Members Says Minting More Tokens Will Cause Inflation
However, the proposal has met with disapproval from community members. Several members noted that issuing such a large amount of time would lead to inflation on the token.
After that, its value will drop down, similar to what happened with LUNA. According to the platform’s report, the attack affected over 65,000 wallets in fourteen different assets.
Meanwhile, the team had said on July 26th that they were working towards repaying the victims. Due to the present state of its treasury, the company offered two options to the community.
The first choice offered to give a 100% reimbursement by minting 4.97 billion tokens. Also, the section option promised a reimbursement of over 50% using 2.48 billion tokens. This second option will take about three years.
However, the team is waiting for feedback from the community before they can continue with their plan. Unfortunately, the first response from the community has been negative.
Several community members have voiced their displeasure over the idea on Twitter. Some have already stated that they would vote No.
Also, some community members referred to the Terra crash in May. The platform had tried to carry out a similar recovery method after it lost over $40 billion.
Harmony Users Ask Team To Stabilize The Ecosystem First
On the platform’s community page, a user @BSKA stated that this is a garbage approach. The user advised the team to return to the drawing board and cook up something better.
Another user, @CJL, criticized the platform for leaving them with no update after the exploitation. However, the community member tagged the proposal a “LUNA-style approach.
Furthermore, most members noted that this proposal would drive builders and developers away. They advised the platform to first establish stability in the ecosystem before thinking of a repayment system.
Additionally, the community members believe attracting more projects to the platform is paramount. This is because they will put long-term investments in the platform.
Last month, a hacker exploited the Horizon Bridge that led to the platform’s layer-1 blockchain and stole over $100 million. That same month, the platform’s team offered the hacker $1 million.
The purpose was to make the hacker return the stolen funds. Unfortunately, the strategy did not yield positive results.
As of the time of writing, the price of the ONE toke is about $0.02. As stated by CoinMarketCap, the platform has over 13.5 billion tokens in total supply.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
