Harmony Community Rejects Team’s $100m Hack Recovery Plan

Stephen Tse, the founder of blockchain project Harmony, said that the team would reconsider a proposal to compensate victims of the Horizon cross-chain bridge hack for $100 million through the issuance of additional native ONE tokens.

Initially, the developers proposed to carry out a hard fork to compensate for the damage and release the required amount of ONE within three years. The plan provided two options for additional emissions:

  • 2.4 billion ONE – compensation for 50% of the damage;
  • 4.97 billion ONE – for 100%.

At the same time, the team noted that the Treasury funds for reimbursement are insufficient and does not consider spending them for this purpose.

“We have chosen not to use the foundation’s treasury in the interests of the longevity and well-being of the project, as recovering from these funds would greatly hamper the structure’s ability to support the growth of Harmony and its ecosystem,” the proposal reads.

The plan drew almost unanimous backlash from users. The majority pointed to its inflationary nature, which would lead to a “blurring” of prices. Some pointed out that this would hit big ONE holders the hardest.

The refusal to use treasury funds also did not meet with understanding among users.

Data: Harmony.

“All you have to do now is say something like, “After careful consideration and community feedback, we will NOT be moving forward with the proposal.” And you need to do it as soon as possible, ”one of the commentators addressed the team.

Voting on the proposal ends on 3 August. However, amid the reaction of users, a day after it was put up for discussion, the founder of the project said that the team was “returning to the table” to develop other options.

“Based on your feedback, we will create additional offers and opportunities for everyone who can participate in this process. I ask you to wait for the next few days while we work with the team. We will be back with new information. I sincerely understand your frustration with the current proposal. We hope our next steps will bring more options and clarity for the community to discuss,” Tse wrote.

After the Horizon attack, the Harmony team offered a $1 million reward for the return of stolen funds. The size of the reward caused bewilderment among users, and a crypto trader under the pseudonym Degen Spartan called it an “insulting amount.” As a result, the offer was increased to $10 million.

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