The Harmony Community Criticized and Rejected the Team’s Plan to Compensate for the Damage From the Hack

The developers of the Harmony blockchain project proposed to carry out a hard fork and release the required volume of ONE within three years to compensate users affected by the hack.

According to their plan, there were two options for further action. Either issue 2.4 billion ONE and compensate for 50% of the damage or issue 4.97 billion ONE, which would compensate for 100% of the damage.

The project team proposed a similar plan due to the fact that the funds of the fund’s treasury are not enough to compensate for the losses of users, so that the structure’s ability to support the further development of Harmony and the ecosystem does not suffer.

Almost immediately, users rejected this plan, justifying this decision with a high inflation risk for ONE, which would hit large token holders the most. The refusal to use treasury funds also did not meet with understanding among users.

Voting on the proposal ends on August 3, but due to the backlash from the community, blockchain project Harmony founder Steven Tse said the team will reconsider their compensation proposal:

“Hello, everyone. Thank you for your comments and suggestions. I have read all of your messages, top to bottom, and met with the team to discuss. Your concerns are understood and we are returning to the drawing board. From your suggestions and feedback above, we will create additional proposals and opportunities for everyone to engage in the process.

I’d ask you to stand by as I work with the team over the coming days. We will return with new information for everyone here to review. Thank you once more. I sincerely feel your frustration over the current proposal. Our next steps will hopefully bring more options and clarity for the community to discuss”.

After the Horizon attack, the Harmony team offered a $1 million reward for the return of stolen funds. This amount caused bewilderment among users, and some considered it mocking. As a result, the offer was increased to $10 million.

As you know, the hacker sent the stolen crypto assets to the mixer.

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