The team behind the Harmony blockchain project has proposed the minting of up to 4.97 billion worth of its native token ONE to compensate victims of the $100 million Horizon Bridge hack in June.

The proposal has been met with a significant amount of backlash from members of the community, with many highlighting concerns that such a large issuance of new tokens would result in inflationary pressure on the asset and bring its value down.

This proposal is disappointing. There is no other options. Seems to be either minting more tokens or minting more tokens. If we disagree, there will be no disbursement as per your proposal.

In its proposal on July 26 via the project’s community page, the Harmony team noted that 65,000 wallets across 14 different assets were impacted by the hack and that they have “worked tirelessly to brainstorm and develop paths towards reimbursing” victims.

The Harmony team stated that it could not offer any solution that results in immediate reimbursement given "the current state of Harmony’s treasury," so it offered two options that involve minting several billion ONE tokens via a hard fork to the Harmony blockchain, which would be given to victims of the hack.

The first option offered to provide an estimated 100% reimbursement via 4.97 billion new ONE tokens, while the second option estimates a 50% reimbursement with 2.48 billion ONE tokens over a three-year period.

The team is awaiting community feedback before proceeding forward, but initial responses already appear to be overwhelmingly negative, with most comments on the community page or on Twitter voicing strong concerns with the ideas.

I will vote no on this 100%. Its not the answer. Use part of the treasury to refund the providers and get