The developers of Harmony, a layer 1 (L1) network, are facing significant backlash after proposing a reimbursement plan for users affected by the devastating June 24 Horizon cross-chain hack. This hack, which occurred in late June and affected 65,000 wallets, resulted in the theft of nearly $100 million. The proposed solution, however, is generating immense controversy within the crypto community.
Harmony's Reimbursement Plan Sparks Outrage
Recently, the Harmony team proposed minting over 4.97 billion ONE, the platform's native token. This hard fork proposal aims to compensate victims of the $100 million Horizon Bridge hack. However, this plan to issue more ONE tokens has been met with fierce opposition. Members of the Harmony (ONE) community have reacted angrily to the suggestion, as it would dilute the value of existing holdings.
The Core Issue: Dilution of ONE Tokens
Harmony’s core team has proposed a hard fork to mint billions of new Harmony (ONE) tokens as part of their reimbursement strategy. The Harmony protocol has been the subject of backlash as the firm announced this hard-fork proposal, suggesting Harmony mint up to 4.9 billion of its native token. The attack on Harmony's Horizon bridge in June continues to cast a long shadow over the project. While Harmony has announced a reimbursement plan for the users who were affected, the community is largely unimpressed.
The debate continues to rage within the Harmony ecosystem, with users voicing concerns about the long-term effects of such a massive token issuance. The future of Harmony and its relationship with its community hinges on finding a resolution that addresses the losses from the June hack without further damaging the value of ONE.