Harmony, a Decentralized Autonomous Organization (DAO) that mints and burns its own cryptocurrency, has proposed minting five billion new tokens after a recent hack. The attack, which took place on the Horizon Bridge platform, resulted in the loss of over $50 million worth of Harmony tokens. In response to the attack, the Harmony team has proposed minting five billion new tokens, which would be used to reimburse users who lost tokens in the attack.
Development Update - The Horizon Bridge Hack
According to the update on their site, they stated saying
"As many of you know, we've been hard at work on the Horizon Bridge hack. We're making good progress, but it's been a bigger undertaking than we initially thought. However, we're confident that we'll be able to finish the job and release the hack to the public soon."
"In the meantime, we wanted to give you a quick update on our progress. We've successfully exploits the flaw in the Horizon Bridge software and have gained access to the system. We're currently in the process of creating a custom exploit that will allow us to take control of the system without triggering any alarms.
We expect to have the exploit ready in the next few days. Once it's ready, we'll be able to release the hack to the public. Thank you for your patience and stay tuned for more updates."
What is the purpose of minting new tokens?
The Harmony team has announced that it will mint five billion new ONE tokens after the recent hack of the Horizon Bridge. The team says that the new tokens will be used to "reward the community for their patience and support during this difficult time."
It's unclear what the exact purpose of minting new tokens is, but it seems to be a way for the team to show appreciation for the community's support. It's also possible that the new tokens will be used to help offset the losses suffered by users who were affected by the hack. Whatever the purpose, it's clear that the Harmony team is committed to making things right for its users.
How will this affect the Harmony community?
After the recent Horizon Bridge hack, Harmony has proposed minting five billion new ONE tokens. This would dilute the current supply of ONE tokens by 30%. While this may be necessary to cover the losses caused by the hack, it will no doubt have a major impact on the Harmony community.
Many community members are already feeling angry and betrayal, as this move would effectively devalue their holdings. Some are even calling for a fork of the Harmony protocol. It remains to be seen how this will all play out, but one thing is for sure: the Harmony community will never be the same.
