Revision 2
Executive Summary
This is the initial attempt to propose Crypto Land DAO as the third official Recovery Partner under the existing framework, wherein 25% of monthly staking rewards from validators are allocated toward buying back depegged assets (e.g., USDC, ETH, WBTC) resulting from the June 2021 Horizon Bridge hack on the Harmony Network as per the HIP30v2
Given the need to expand the number of Recovery Partners, Crypto Land DAO proposes to receive a progressive share of the 25% allocation — starting at 15%, increasing to 30%, and eventually reaching up to 50% over time — based on demonstrated performance and alignment with broader recovery goals.
Crypto Land DAO does not intend to change the current strategy of the existing partners, however with the addition of Crypto Land DAO as a Recovery partner, the sale pressure on ONE tokens will be reduced.
Background: The Horizon Bridge Hack & Recovery Mechanism
- Incident Date: June 24, 2021
- Estimated Loss: ~$100 million
- Impact: Mass depegging of bridgessets (e.g., USDC, ETH, WBTC), loss of user confidence, and ecosystem instability.
Current Recovery Approach
To stabilize markets and restore trust, Harmony has implemented a recovery mechanism:
- Validators contribute 25% of their monthly staking rewards to be used for:
- Buying back depegged assets
- Permanently removing them from circulation
- Restoring market integrity and long-term confidence in the network
These funds are distributed to approved Recovery Partners, who execute buybacks transparently and report results to the community.
Existing Recovery Partners
To provide context on the current recovery landscape, the following partners are actively involved in the Harmony ecosystem’s recovery efforts:
- Recovery One
- Website: https://recovery.exchange/
- Twitter: @recoveryonefdn
- Strategy: Recovery One is the primary active partner currently receiving 100% of the monthly allocation from . Their approach involves selling ONE Tokens on centralized exchanges (CEXs), repurchasing the depegged assets at discounted rates on chain, and burning the recovered tokens to permanently remove them from circulation.
- Burner.modulo.so
- Website: https://burner.modulo.so
- Twitter: @modulo_so (currently inactive)
- Strategy: Modulo was another recovery partner focused on asset buybacks and burns. However, their operations have been suspended as of this proposal’s submission date.
Why Crypto Land DAO?
Crypto Land DAO is a decentralized autonomous organization focused on blockchain education, market integrity, and community empowerment. We offer:
- Proven engagement with the Harmony ecosystem
- Transparent governance model via token-holder voting
- Understandable documentation that clearly explains all processes and outcomes
- Infrastructure already in place to exchange, burn, stake, and bridge assets efficiently
Our role is strictly to support the economic recovery of the ecosystem by participating in the buyback and permanent removal of depegged assets.
Proposed Participation Model
Crypto Land DAO seeks to become the official third Recovery Partner, receiving an incremental share of the monthly allocated funds, estimated ~10M ONE monthly, based on the following structure:
| Phase | Timeframe | Allocation Share | Key Objective |
|---|---|---|---|
| 1 | Months 1–3 | 15% | Initial integration and execution of buybacks |
| 2 | Months 4–6 | 30% | Demonstrate measurable impact and begin testing new strategies |
| 3 | Months 7–9+ | Up to 50% | Prove effectiveness of new strategies and expand role |
Each phase will be subject to DAO governance approval and public reporting on outcomes through documentation, social media communication and leveraging the transparency of the open ledger technology.
Key Objectives & Measurable Metrics
Below are the core objectives for each phase, along with their associated measurable metrics :
Phase 1: Initial Integration & Execution (Months 1–3)
Objective: Successfully onboard and begin executing buybacks according to plan.
- Metric 1: Funds received stored in multisig wallet
- Metric 2: First buyback executed within 10 days of onboarding
- Metric 3: All activity visible on the multisig transaction page
Phase 2: Impact Assessment & Strategy Testing (Months 4–6)
Objective: Demonstrate positive impact on market conditions and begin testing with new strategies.
- Metric 1: At least $32,500 worth of depegged assets bought and burned per month
- Metric 2: Weekly average price of target asset improves by at least 2% compared to baseline
- Metric 3: Buyback operations continued without interruption for 3 consecutive months
- Metric 4: At least one new buyback strategy tested and documented
Phase 3: Long-Term Effectiveness (Months 7–9+)
Objective: Prove sustained contribution to ecosystem recovery and demonstrate successful implementation of innovative strategies.
- Metric 1: Cumulative burn value exceeds $250,000 across all phases
- Metric 2: Positive validator and community sentiment reflected in governance vote
- Metric 3: No deviation from stated strategy or operational issues reported
- Metric 4: At least two AMAs hosted and documented for community engagement
- Metric 5: At least one new buyback strategy becomes part of standard operating procedure
Buyback Strategy Overview
- Focus on high-volume depegged assets such as USDC, ETH, and WBTC
- Execute buybacks via DEXs or CEXs in a manner that avoids market manipulation.
- Report key outcomes directly via on-chain data from the multisig wallet.
- Send all recovered assets to a burn address to permanently remove them from circulation.
Key Enhancements to Recovery Strategy:
Multisig Wallet Control
All funds received and operations executed will be managed via multisignature wallets, ensuring security, redundancy, and collective decision-making before any transaction occurs.
Full On-chain Traceability
All actions — including incoming funds, buybacks, burns, and internal transfers — will be conducted on-chain and fully traceable via public wallet addresses. This eliminates the need for third-party reporting; everything will be verifiable by the community directly from the multisig interface.
Leverage Yield-Bearing Strategies
Where applicable, we will utilize yield bearing strategies including stablecoins or protocols (e.g., 1sDAI, uONE) to put idle funds to work. This allows us to maximize the economic efficiency of the recovery process while maintaining full transparency and risk control.
Innovative Buyback Strategies
Crypto Land Dao proposal
Crypto Land DAO introduces the following innovative strategies to incentivize participation, drive engagement, and maximize the efficiency of the recovery process:
- Burn Raffle Mechanism
- To make the recovery process more engaging, swappers can opt into a “burn raffle.” By paying a small fee, participants gain a multiplier on their swap. The raffle mechanism adds a gamified element to the recovery process, driving higher participation while ensuring funds are used effectively for buybacks.
- Token Locking & Airdrop Program
- Users can lock their tokens for a predetermined period and receive airdropped rewards over time. At the end of the locking period, the locked tokens are forfeited and permanently removed from circulation. This strategy incentivizes long-term commitment to the recovery process while gradually reducing the circulating supply of depegged assets.
- Rug/ONE Exchange with Bonus
- Users can exchange depegged tokens for RUG or ONE via rug.cryptolanddao.com, receiving a 5%+ bonus compared to market value. This approach encourages users to participate in the recovery process while providing them with additional value for their contributions.
Community proposals
The community and DAO members can propose and develop new and creative approaches to enhance the buyback and burn process.
We encourage validators, users, and Harmony stakeholders to submit ideas related to:
- Token incentives for liquidity providers
- NFT-based fundraising for recovery
- Cross-chain arbitrage opportunities
- Community-led market making
- Community-led builders incentives
All proposals will be reviewed, tested (if feasible), and potentially integrated and documented for transparency into future phases of the recovery effort.
Transparency & Accountability
To ensure full transparency and community trust:
- All buyback and burn activity will be fully visible via the multisig wallet page.
- Funds received and used will be accounted for on-chain.
- Regular AMAs and forum updates will keep the community informed.
Documentation will be created in simple, accessible formats so that all stakeholders can easily understand our actions and progress.
Benefits of This Partnership
| Stakeholder | Benefit |
|---|---|
| Harmony Network | Faster stabilization of depegged assets; increased user confidence |
| Validators | Efficient use of allocated 25% for real-world impact |
| Affected Users | Improved chances of restoring value perception and ecosystem stability |
| Crypto Land DAO | Opportunity to demonstrate DAO-led economic recovery |
| Wider Community | Transparent, decentralized approach to crisis management, empowering the community |
Call to Action
We respectfully request the Harmony Community and Team to consider approving Crypto Land DAO as a the third official Recovery Partner under the existing 25% staking reward allocation framework.
By welcoming Crypto Land DAO into this initiative, the community will empower a decentralized, secure, and accountable entity to help restore economic health to the Harmony ecosystem through responsible and measurable action.
Operative Plan
- Continue to revise and update the Crypto Land DAO proposal based on the Harmony One core team and community feedback.
- Harmony Community Vote to approve Crypto Land DAO as the third official Recovery Partner.
- DAO Governance Vote within Crypto Land to formally accept the role.
- Onboarding Process: Communicate multisig wallets, reporting tools, and coordination channels.
- Resignation of Tenacious_DEFI and metaONE KLAS from their Recovery Multisig Custodian position
- Implement the outlined strategy (Phase 1, 2 and 3)
The bad debt