Harmony Proposes Minting Billions of ONE Tokens to Reimburse Hack-Affected Users

Harmony Proposes Minting Billions of ONE Tokens to Reimburse Hack-Affected Users
Source: AdobeStock/ josefkubes

Layer -1 blockchain Harmony has actually proposed to mint billions of its ONE tokens in order to reimburse the victims of the Horizon bridge hack that saw around USD 100m of user funds taken.

The Harmony blockchain would have to tough fork and increase the supply of ONE to mint brand-new tokens. The group stated compensation would remain in the type of ONE tokens and cover a three-year duration due to the treasury’s minimal capability to supply instant compensation.

In a post, the Harmony group advanced 2 working choices and requested the neighborhood’s feedback.

The initially alternative is “an approximated 100% compensation” that proposes minting ONE 4.97 bn, which relates to a 3-year month-to-month emission of 138m tokens, or around USD 2.76 m, utilizing the token rate of USD 0.020, they stated.

The 2nd alternative is “an approximated 50% compensation” that recommends minting ONE 2.48 bn over a three-year duration, which equated into a month-to-month emission of 69m tokens, worth around USD 1.38 m utilizing the token rate of USD 0.020.

“The quantity of ONE dispersed will be based upon the USD worth of tokens lost throughout affected wallets from the time we carry out a picture,” the group stated.

They included that, from the picture forward, the circulations will be made based upon the number of pre-calculated ONE tokens, not based upon their fiat-currency worth.

This implies that impacted users would get a particular quantity of ONE based upon the picture ignoring the token’s rate. Some users argued that this “does not make good sense,” recommending that it ought to alter based upon market price.

“The compensation ought to be at least based upon existing market price every month and not.02. So if One goes to [USD] 1. You simply compensated [USD] 4 billion+ to those that lost [USD] 100 million,” one user stated, while another wasn’t as positive about the rate, stating: “if ONE goes to [USD] 1 I’ll provide you my mom.”

Many users, nevertheless, slammed the group for desiring to “print cash” out of thin air, arguing that they would be driving the rate down for others in the neighborhood as “more supply typically implies lower rates.”.

Arpit Sharma, another neighborhood member, kept in mind that minting billions of brand-new tokens might crash the rateof ONE

Some users likewise slammed the group’s choice not to utilize treasury funds. “So your letting the investors/users pay the depegged and compensation? This will ruin the chain and financiers will pull out not waiting on that quantity of time,” one Twitter user stated

However, the group stated that they chose versus utilizing the treasury “in the interest of the durability and wellness of the job as compensating from the treasury would considerably impede the structure’s capability to support the development of Harmony and its community.”

As reported, in late June, a hacker made use of a vulnerability in Harmony’s Horizon Bridge, which permits token transfers in between the Harmony network and Ethereum (ETH), Binance Chain (BNB), and Bitcoin (BTC), to take USD 100m worth of various crypto properties in lateJune

At 7:41 UTC on Wednesday early morning, ONE was trading at USD 0.0198, down 2.5% in a day and 23.5% in a week. It likewise dropped 14% in a month and 95% from its all-time high taped in October 2021.

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Compiled by Coinbold.

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