Harmony Proposes Hard Fork, Minting of Billions of ONE to Make Hack Victims Whole

Summary:

• The Harmony Protocol team has proposed a reimbursement plan that involves hard-forking the chain.
• The plan involves two options: minting 4.97 billion ONE for full reimbursement or 2.48 billion ONE for 50% reimbursement.
• The minted ONE will then be distributed within three years.

The team at Harmony protocol has proposed a reimbursement plan to make whole its community members affected by the $100 million exploit carried out by the state-sponsored North Korean hacker group, Lazarus.

The proposal involves Forking the Harmony Chain, minting Billions in ONE.

To begin with, the proposal involves a hard fork of the Harmony chain to increase the supply of ONE token. These tokens will, in turn, be used to reimburse affected community members over three years. The distributions will be made monthly with claims being made ‘at any time that tokens are available for the impacted wallets.’

The proposal also suggests two ways the ONE tokens can be minted with the hard fork. The first is minting 4.97 billion ONE to facilitate a 100% reimbursement. This amount equates to roughly 138 million ONE tokens distributed monthly or $2.76 million using a price of $0.020. The tokens will gradually be introduced into circulation over the three years.

The second option is minting an estimated 2.48 billion ONE to facilitate a 50% reimbursement to affected community members. This translates to roughly 69 million ONE tokens per month or $1.38 million. The tokens will also be gradually introduced into circulation over three years.

An additional 86 million ONE will be minted as part of the plan. These tokens will be used to resolve uncollectible loans across various DeFi lending protocols intertwined with the Harmony ecosystem.

Harmony Community Voices Concerns Over the Potential Inflation of ONE.

However, the plan to hard-fork the Harmony chain and mint billions of ONE has received mixed reactions from the community, who are concerned about the impact of the additional tokens on its value. Below is a sample of responses from both Twitter and the Harmony talk forum.

Guys, minting of 4.97B ONE will crash the price in merely few days. Please think about the investors who have been holding and staking for years. We won’t reach an ATH ever again with that supply. The chain would collapse. – by @ingenious_geek on Twitter.

I’m about to unstake all of my $ONE tokens and sell them for a different chain if either options happen You can’t print more tokens out of thin air and expect me to essentially payback those effected by the #HarmonyOne hack. My staked 200k are only a small drop in the ocean. – by @DogecoinPilot on Twitter.

“We gonna give you tokens that will be heavily inflationary, but don’t hurry, every little thing is gonna be alright” – by Allayam on talk.Harmony.one.

Can the proposal add a BURN after the wallets are reimbursed? Personally though, what’s lost is lost (we know the risks of crypto and that it’s not FDIC insured)…Re-peg is more important. – by PyramidMines on talk.Harmony.one.

[Feature image courtesy of ShutterStock.com.]