Harmony decides to reimburse affected users by minting billions of ONE token

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Since Harmony layer-1 blockchain’s loss of $100 million worth of Ether due to the bridge hack and the following rejection of their Whitehat offer for the fund’s return by the attacker, the community is devastated and worried. The Harmony developers have thus started exploring ways to make up for the users’ lost funds.

Unfortunately, the solution by Harmony is closely similar to the one offered by the Luna team after LUNA/UST disaster. Basically, the developers have suggested a hard fork and minting up to 4.97 billion OP tokens to be distributed over three years to the impacted community members.

Harmony community welcomes neither solutions

After nearly a month of radio silence following the hack, Harmony addressed the public through a blog post and invited people to vote on suggested solutions.

The devs firstly asserted that an immediate reimbursement would be impossible given the situation of their treasury at the time, which may signify a variety of things, few of which are positive. Harmony offered to compensate the community in OP tokens that would be created after a hard fork in exchange for the loss of over 14 distinct asset classes valued at around $100 million from 65,000 wallets.

This inflationary proposal can be implemented in either of the following ways:

  • Fully compensating users for the value of their stolen tokens, with a minting of 4.97 billion ONE tokens, which equates to a 3-year monthly emission of 138 million tokens. This means an affected user can receive reimbursement at some random point in the next three years.
  • Reimbursing users for only 50% of the value stolen, with a minting of 2.48 billion ONE tokens, which equates to a 3-year monthly emission of 69 million tokens. Similar to the first proposal, minted tokens will be gradually brought into circulation over the next three years.

Notably, the community doesn’t seem happy with the proposed options. While some dismissed the ideas right away, some suggested other proposals. 

Notably, soon after the Harmony hack, the attacker indirectly refused the Whitehat offer by the company by mixing the stolen funds using Tornado Cash to launder the money and come clean.

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