The staff behind the Concord blockchain venture has proposed the minting of as much as 4.97 billion value of its native token ONE to compensate victims of the $100 million Horizon Bridge hack in June.
The proposal has been met with a big quantity of backlash from members of the neighborhood, with many highlighting issues that such a big issuance of latest tokens would lead to inflationary stress on the asset and convey its worth down.
This proposal is disappointing. There isn’t a different choices. Appears to be both minting extra tokens or minting extra tokens. If we disagree, there can be no disbursement as per your proposal.
— evening (@night7576) July 27, 2022
In its proposal on July 26 through the venture’s neighborhood web page, the Concord staff famous that 65,000 wallets throughout 14 completely different property had been impacted by the hack and that they’ve “labored tirelessly to brainstorm and develop paths in direction of reimbursing” victims.
The Concord staff said that it couldn’t provide any answer that ends in quick reimbursement given “the present state of Concord’s treasury,” so it provided two choices that contain minting a number of billion ONE tokens through a tough fork to the Concord blockchain, which might be given to victims of the hack.
The primary choice provided to supply an estimated 100% reimbursement through 4.97 billion new ONE tokens, whereas the second choice estimates a 50% reimbursement with 2.48 billion ONE tokens over a three-year interval.
The staff is awaiting neighborhood suggestions earlier than continuing ahead, however preliminary responses already seem like overwhelmingly detrimental, with most feedback on the neighborhood web page or on Twitter voicing sturdy issues with the concepts.
I’ll vote no on this 100%. Its not the reply. Use a part of the treasury to refund the suppliers and get every thing is sweet standing and transfer ahead. The buyers and neighborhood shouldnt need to pay for it.
— mcone.one (@mconecrypto) July 27, 2022
The neighborhood has additionally famous {that a} related methodology of restoration was employed by the Terra eco-system following its $40 billion soften down in Might.
On the neighborhood web page, person BSKA wrote “That is completely rubbish, scrap the entire proposal and return to the drafting board Staff!” whereas CJL famous “let me get this straight: no phrase for weeks […] and the proposal you come again with is a LUNA-style exhausting fork and a 3-year vest?”
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Neighborhood member shwaver advised this proposal will find yourself driving builders away from the Concord eco-system:
“You’ve finished this fully backwards. In an effort to afford compensation, you could first reestablish a secure ecosystem e.g. repeg or different so initiatives have a motive to construct right here, folks have a motive to make long-term investments, and so forth.”
“This purely inflationary answer does the alternative–making a monetary incentive to promote all ONE now and construct elsewhere–whereas additionally punting on the repeg,” they added.
In June, the Horizon Bridge to the Concord layer-1 blockchain was exploited for $100 million.
Later within the month, the staff tried to supply a $1 million bounty to the hacker who exploited the bridge to return the funds — though the technique seemingly failed.
Concord’s ONE token is priced at $0.02 on the time of writing, with a complete provide of 13.5 billion tokens, in response to Coinmarketcap.
