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Harmony under fire over recovery plan

Harmony hack
Harmony hack

Community members have criticised Harmony’s proposal to mint $4.97 billion worth of its native token, ONE. The proposal reportedly emanated to assist the victims of last month’s horizon bridge security breach in recovering their funds. Recall that victims of the Horizon Bridge Hack endured over $100 million from the exploitation.

Harmony, on Tuesday, hinted that about 65,000 wallets were affected by the exploitation, involving over 14 different virtual assets. Additionally, the protocol affirmed the commitment of its team to work tirelessly towards minimising the impact on affected users. As observed, Harmony proposed two options which will take at least three years to materialise.

According to Harmony, the first option is to mint $4.97 billion worth of ONE token which will avail customers with 100% of their lost funds. In the second option, the firm could mint $2.48 billion worth of its ONE token. This second option will, however, avail users with only 50% of their lost funds. According to the team, it still awaits feedback from the community before proceeding with the proposal implementation. The protocol’s Twitter community has begun to backlash against the proposal.

According to reports, numerous community members criticised the protocol’s proposal. Some users condemned the move,  insisting that minting such a token amount would cause inflation. The inflation, as predicted, will mount pressure on the token value.

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Similarly, some members think Harmony is subtly planning to make customers bear part of the losses incurred from the exploitation. Few others feel the protocol attempts to deceive its users into making an unfavourable decision.

One of the community members, identified as @night7576, condemned the proposal, stressing that it gives just two similar options. According to the user, the option is “either minting more tokens or minting more tokens.” 

The user said disagreement with it means no disbursement as per its proposal. Another user identified as @mconecrypto disclosed his plan to vote “NO” on the proposal. The user admonished Harmony to use part of the treasury to refund customers. @mconecrypto further noted that the community and investors should not be the ones to bear the cost of the refund.

Regardless of the criticism faced by Harmony, its team has maintained that the present state of its treasury does not make another option possible. Recall that the firm had attempted to offer a $1 million bounty to the hack perpetrators in June to recover part of the stolen funds. However, the move to date has yielded no positive outcome.

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