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Backlash as Harmony proposes minting 4.97B tokens to reimburse victims

The workforce behind the Concord blockchain challenge has proposed the minting of as much as 4.97 billion value of its native token ONE to compensate victims of the $100 million Horizon Bridge hack in June. 

The proposal has been met with a major quantity of backlash from members of the neighborhood, with many highlighting issues that such a big issuance of latest tokens would lead to inflationary strain on the asset and convey its worth down.

In its proposal on Tuesday by way of the challenge’s neighborhood web page, the Concord workforce famous that 65,000 wallets throughout 14 completely different property have been impacted by the hack and that they’ve “labored tirelessly to brainstorm and develop paths in the direction of reimbursing” victims.

The Concord workforce said that it couldn’t supply any resolution that ends in instant reimbursement given “the present state of Concord’s treasury,” so it provided two choices that contain minting a number of billion ONE tokens by way of a tough fork to the Concord blockchain, which might be given to victims of the hack.

The primary choice provided to offer an estimated 100% reimbursement by way of 4.97 billion new ONE tokens, whereas the second choice estimates a 50% reimbursement with 2.48 billion ONE tokens over a three-year interval.

The workforce is awaiting neighborhood suggestions earlier than continuing ahead, however preliminary responses already seem like overwhelmingly detrimental, with most feedback on the neighborhood web page or on Twitter voicing sturdy issues with the concepts.

The neighborhood has additionally famous {that a} related methodology of restoration was employed by the Terra eco-system following its $40 billion meltdown in Could.

On the neighborhood web page, person BSKA wrote “That is completely rubbish, scrap the entire proposal and return to the drafting board Crew!” Whereas CJL famous, “let me get this straight: no phrase for weeks […] and the proposal you come again with is a LUNA-style laborious fork and a 3-year vest?”

Associated: Notorious North Korean hacker group recognized as suspect for $100M Concord assault

Neighborhood member shwaver urged this proposal will find yourself driving builders away from the Concord eco-system:

“You’ve accomplished this fully backwards. So as to afford reimbursement, it’s essential to first reestablish a steady ecosystem e.g. repeg or various so tasks have a cause to construct right here, folks have a cause to make long-term investments, and so on.”

“This purely inflationary resolution does the alternative–making a monetary incentive to promote all ONE now and construct elsewhere–whereas additionally punting on the repeg,” they added.

In June, the Horizon Bridge to the Concord layer-1 blockchain was exploited for $100 million.

Later within the month, the workforce tried to supply a $1 million bounty to the hacker who exploited the bridge to return the funds — though the technique seemingly failed. 

Concord’s ONE token is priced at $0.02 on the time of writing, with a complete provide of 13.5 billion tokens, based on Coinmarketcap. 

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