Harmony's Victim Repayment Proposal Faces Criticism

Harmony’s Victim Repayment Proposal Faces Criticism

Recently, the Harmony team recommended that the network mint around 4.97 billion ONE, the network’s native cryptocurrency.

The tokens are being created to recompense those who lost money as a result of the Horizon Bridge attack. According to accounts, the attacker stole more than $100 million via the bridge.

Members of the community believe that minting more tokens will cause inflation.

Nevertheless, the initiative has been faced with opposition from residents of the community. Several participants expressed concern that issuing such a significant quantity of time might result in token inflation.

Following that, its value will fall, similar to what happened with LUNA. The hack, according to the network’s assessment, affected approximately 65,000 wallets in fourteen different assets.

However, on July 26th, the team stated that they were working to reimburse the victims. Due to the current situation of its treasury, the corporation provided the community with two options.

The first option offered a full refund by minting 4.97 billion tokens. Furthermore, the section option guaranteed a compensation of more than 50% with 2.48 billion tokens. The second option will take approximately three years.

However, the team is awaiting public response before proceeding with their strategy. Unfortunately, the community’s initial reaction has been negative.

Several people of the community have expressed their disapproval with the concept on Twitter. Some people have already said they will vote no.

In addition, some people in the group mentioned the Terra crash in May. After losing over $40 billion, the network attempted a similar recovery technique.

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Harmony users request that the team first stabilize the ecosystem.

This is a rubbish technique, according to user @BSKA on the system’s community page. The user suggested that the crew go back to the drawing board and come up with something better.

Another user, @CJL, chastised the platform for failing to provide an update following the exploitation. The plan, however, was labeled as a “LUNA-style approach” by a community member.

Furthermore, the majority of members expressed concern that this approach will scare away builders and entrepreneurs. They encouraged the company to first build environmental stability before considering a reimbursement scheme.

Furthermore, members of the public believe that drawing more projects to the platform is critical. This is due to the fact that they will make long-term investments in the platform.

Last month, a hacker stole over $100 million by exploiting the Horizon Bridge, which led to the system’s layer-1 blockchain. The product’s team promised the hacker $1 million the following month.

The goal was to force the hacker to refund the stolen monies. However, the method failed to provide positive outcomes.

At the time of writing, the ONE toke costs roughly $0.02. According to CoinMarketCap, the platform has a total supply of around 13.5 billion tokens.