Community members criticized Harmony’s proposal to mint $4.97 billion from its native token, ONE. The proposal reportedly emanated to help victims of last month’s Horizon Bridge security breach recover their funds. Recall that the victims of the Horizon Bridge Hack endured more than $100 million from the exploitation.
Harmony on Tuesday suggested around 65,000 wallets were affected by the exploit, involving more than 14 different virtual assets. Additionally, the protocol affirmed its team’s commitment to work tirelessly to minimize the impact on affected users. As observed, Harmony has offered two options that will take at least three years to materialize.
According to Harmony, the first option is to mint $4.97 billion of a ONE token which will benefit customers with 100% of their funds lost. In the second option, the company could mint $2.48 billion from its ONE token. This second option, however, will only benefit users with 50% of their lost funds. According to the team, it is still awaiting community feedback before proceeding with the implementation of the proposal. The Protocol’s Twitter community began to react against the proposal.
According to reports, many members of the community criticized the protocol proposal. Some users condemned the move, insisting that minting such a symbolic amount would cause inflation. Inflation, as expected, will increase the pressure on the symbolic value.
Similarly, some members believe that Harmony subtly plans to pass on some of the losses incurred by the operation to customers. Few others believe that the protocol attempts to trick its users into making an unfavorable decision.
One of the community members, identified as @night7576, condemned the proposal, pointing out that it only gives two similar options. According to the user, the option is “either hit more chips or hit more chips”.
The user said disagreeing with this means there is no disbursement according to their proposal. Another user identified as @mconecrypto revealed his intention to vote “NO” on the proposal. The user urged Harmony to use some of the cash to refund customers. @mconecrypto further noted that the community and investors should not be the ones to bear the cost of redemption.
Regardless of the criticism Harmony is facing, his team argued that the current state of his cash flow does not make another option possible. Recall that the firm had tried to offer a bounty of $ 1 million to hackers in June to recover some of the stolen funds. However, the move so far has not yielded any positive results.
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