Harmony’s core dev team has billions of new Harmony (ONE) altcoins suggested a hard fork to print it. The proposal came as part of a plan to reimburse victims of last month’s bridge hack.
Harmony is a proof-of-stake (PoS) blockchain that advertises itself as a faster and cheaper Ethereum alternative. The ONE token is used as a native asset to pay transaction fees on the network.
Harmony (ONE) Wants to Repay Hack Victims by Printing Altcoins
In June, a hacker had $100M locked in the Horizon bridge operated by Harmony on Ethereum. cryptocurrency had stolen its existence. Victims have been demanding reimbursement ever since.
On Wednesday, the altcoin team recommended that the community fork the Harmony network and issue a new source of tokens to start the redemption process. “This proposal will require a hard fork of the Harmony Blockchain as it will increase the ONE token supply,” the proposal said.
The final proposal gave community members two options to decide how many tokens to issue.
The first option is to print 2.48 billion ONE tokens ($49.6 million), which the team claimed would be enough to compensate victims for 50% at the current market price of $0.02 per ONE token.
The second option was determined to be issuing 4.97 billion ONE tokens ($99 million), enough to pay full compensation to the victims.
The team argued that it should not spend treasury funds on hack repayment, saying it wants to protect its treasury assets for growth and ecosystem plans. “We have decided not to use the foundation’s treasury for the longevity and prosperity of the project, as paying back from the treasury will greatly hinder the foundation’s ability to support the growth of Harmony and its ecosystem.” it was said.
Community members expressed that such a step could be detrimental to the price of the ONE token.
*Not investment advice.