On June 24, Horizon, an asset cross-chain bridge officially developed by Harmony, was hacked. The incident eventually caused a total asset loss of $99,340,030, involving about 65,000 wallets and 14 types of assets.
In the following dozens of days, Harmony tried a variety of ways to recover funds, including trying to talk directly to the hackers, launching a huge reward, requesting FBI volunteers, etc., but all failed. Hackers completed the transfer of stolen money in batches through the currency mixing protocol Tornado Cash.
Specifically,
Specifically,Harmony proposes a hard fork of the blockchain. The forked blockchain will increase the supply of ONE and compensate affected users monthly in the form of ONE within a three-year period.
Odaily Note: A small part of the compensation ONE will be allocated to the DeFi protocol that is technically disabled due to this event. For example, Aave’s ONE pool is currently empty, and it is theoretically impossible for users who have lent assets to repay ONE to redeem the existing ones. A value-backed stablecoin, which also means that users who provide ONE liquidity to the pool will not be able to recover their assets.
The proposal provides for two more specific alternative compensation options:Option 1 is 100% compensation, which means that Harmony will issue an additional 4.97 billion ONE, that is, 138 million ONEs (2.76 million U.S. dollars at a price of 0.02 U.S. dollars) will be issued every month for 3 years, and will be gradually put into circulation;Option 2 is 50% compensation, which means that Harmony will issue 2.48 billion ONE, that is, 69 million ONE (1.38 million U.S. dollars at a price of 0.02 U.S. dollars) will be issued every month for 3 years, and will be gradually put into circulation.
It is conceivable that such a proposal is bound to cause an uproar in the Harmony community. As of 20:00 Beijing time, less than half a day after the proposal was released, there have been more than 100 discussions on the proposal in the Harmony Governance Forum, and almost all of them were negative responses. Simply pick a few for everyone to see:
Community user @DogecoinPilot: Additional issuance will only destroy ONE.
Community user @CJL: The community should not pay for the negligence of the development team.
Community user @Pionner: Why are these two broken options? What about the community discussion session?
Community user @BSKA: What kind of rubbish proposal!
Community user @dilutedtozero: After a few weeks, you have discussed such a thing?
Community user @Strongest_ONE_Hodler: Do you think you are saving the chain? No, you are destroying it!
Community user @moodypicks: What about the foundation money?
Community user @CommonCentz2021: Do you want to follow the old path of LUNA?
Community user @BigCryptoKing: How do you have the face to say this?
Community user @Beeelzebub: Is anyone considering a class action lawsuit?
Community user @ArthurMorgan: Can't you sell some shares to CZ and let him take over? (CZ: I thank you oh...)
……
The anger of community users is not difficult to understand, combined with the results of the previous two huge cross-chain bridge hacking incidents that are highly similar to this incident (similarity: both are backed by a public chain or side chain ecology, and neither of them recovered the stolen money) Looking at it, Wormhole filled the 120,000 ETH funding hole with the support of Jump, and Ronin quickly completed a round of financing of 150 million US dollars led by Binance, and used the financing amount to compensate those affected by the event. user.
In contrast, Horizon this time, after more than a month of "hard work",Damaged users not only waited until the savior appeared like Wormhole and Ronin users, but did not even see that Harmony used its own foundation reserves. In response to this, Harmony explained that if the funds of the foundation are used, it will affect the foundation's future support for the development of the Harmony ecosystem, thereby affecting the long-term development of the project...
In "helplessness", Harmony finally chose to issue ONE to fill the funding hole, but this is obviously asking all ONE holders to pay for the technical mistakes of the development team. Not to mention whether it is reasonable to do so, with the disclosure of the content of the proposal, the price of ONE in the secondary market has fallen below Harmony’s preset standard of $0.02 when calculating vacancies. As the supply of tokens continues to increase, Its price may go down further, and it seems unreasonable to rely on this method to fully fill the vacancy.
According to the Harmony plan, snapshot voting for this proposal will start on August 1, and the results will be announced on August 15. However, judging from the current collective attitude of the community, it is still doubtful whether this proposal can continue to advance.
