In July 2023, the Harmony Team proposed and implemented HIP-30v2, which split the annual emission of 441M ONE tokens, allocating 25% for bridge recovery and 75% for staking rewards. However, since November 2023, the Harmony Foundation Team has not contributed to the recovery efforts, and progress has stalled recently, with only 1 partner left who offers non-competitive rates.
Problem Statement
The current 25% emission split for recovery has not been effective in achieving its intended goal of accelerating bridge recovery. With the Harmony Foundation Team’s lack of contribution, the recovery efforts have come to a halt. This proposal aims to revert the emission split to its original allocation, ensuring that the network’s staking rewards are not unnecessarily reduced.
Proposal
We propose to revert the 25% emission split for recovery, effective immediately. The annual emission of 441M ONE tokens will be allocated 100% for staking rewards, as it was before HIP-30v2.
Rationale
The Harmony Foundation Team’s lack of contribution to recovery efforts has rendered the 25% emission split ineffective.
The reduced staking rewards have negatively impacted validators and delegators, who are essential to the network’s security and decentralization.
Reverting the emission split will ensure that the network’s staking rewards are competitive and attractive to validators and delegators.
Implementation
The proposed changes will be implemented as follows:
The 25% emission split for recovery will be reverted, and the annual emission of 441M ONE tokens will be allocated 100% for staking rewards.
The Recovery Multisig will no longer receive tokens from the network emission.
Updated 12/16/2024
Simplified this proposal to revert the 25% due to no feedback. We are ready to move on with posting this proposal officially.
It took many months of asking, as they never chimed in here, but @theo1 did confirm Harmony halted recovery payments when HIP-32 went live on a HERs podcast (and there are no payments to the recovery teams other than staking rewards).
If Harmony catches up on contributions and becomes serious about finishing this I’m open to removing this request until recovery is completed.
Funds should not be stolen for half cooked schemes at the top of a bull run.
100% Harmony should have disclosed they intended to stop contributions after staking rewards were redirected.
Interesting topic. It does beg the question as to how long does the recovery have to go on for at the cost to delegators/validators.
To further a topic of discussion: how long must recovery go on for before we just draw a line under it? If redemption has stalled why are we losing staking rewards ? What is the new projection on an ETA ?
I also don’t pretend to understand the mechanics of how pegging works etc but would it now be best to allow cashing out at whatever the current rate is, instead of the hack value permanently ? Wouldn’t that mean we likely clear the bad assets out quicker?
RMC gets the 25% from staking, then gives it to Recovery ONE (the only partner left afaik, and they have a lot of funds waiting for exchange but rates aren’t great) and we have around another 10m ONE or so to send over soon.
No other source of funds has been contributed since Harmony stopped the $120k monthly in Nov 2023.
First of all, it should be clarified that the AMOUNT expected to be recovered should be in a FIAT value of the tokens/coins at the timestamp of the hack, as previously mentioned by proposals made by the team (i.e. $ONE @ $0.02). We should NOT be expected to pay coin for at prices during the bull run.
Secondly, If it gets out that “The Team” bowed out while the rest of the community took the full weight of the burden, that will be serious FUD and likely negatively impact the price of $ONE. Like it or not, that matters to us investors. Furthermore, I take GREAT offense at this act by “The Team”. I never used a bridge (knowing the risk of it falls on me and not the network), yet I have been taxed on my staking rewards to cover the recovery… why did “The Team” not also share in this communal burden?
I feel the entire protocol could have and probably should have made the hard choice that “The Team” made, concluding: “This is crypto. Using a bridge is historically risky and to do so is to do it at your OWN risk”. We should’ve done as “The Team” has done and washed our hands of it. Those affected would be the ones that took the risk upon themselves.
Harmony BSR (Bitcoin Strategic Reserve) proposal itself is a noble proposal for a buyout of Bitcoin towards 1000x BUIDL’ing.
Harmony has the best path option to very first implement BSR into blockchain workflow.
Great news is : $ONE has already community approved workflow of 25% of 441M $ONE to go to Harmony accelerated recovery and is operational since 2023 which is huge!
Split 441M ONE tokens annual emission: 75% for staking rewards and 25% for $ONE recovery.
So, the workflow update to just allocate those allocation for BSR would be massive and this is thru again community led effort.
For the awareness, how valuable harmony would become through this continued community effort to BSR: #Bitcoin Strategic Reserve for the community and by the community.
Allocation of the 25% split to BSR would be massive, following the playbook for
MicroStrategy adhering Bitcoin Standard Company
Would love to see harmony to be ranked to #3 @ CoinMarketCap rather a revert which does nothing.
PS: Currently self HODL’ing 80M+ ONE & fully staked
Would be happy to contribute continuation of staked rewards to: split emission to go to BSR as a proposal.
Proposal has been updated removing elimination of RMC - Recall that RMC isn’t a team that is supposed to manage or think about the funds, they are to simply pass the funds on to the 3 approved recovery partners.
The RMC can feel free to continue on as they’d like without our funding from staking. Harmony can provide funding or validators could opt in to donating funds amongst other ideas.
We also added a line about paying off harmony’s promised debts to their core daos with the final payment from the staking funds.
As long as these forums stay alive, there surely are a lot of records here.
Not sure if all of those records were fully covered or posted about on the forum but the team members are still around so we should be able to gather that information.
I will work on contacting each of the 3 core DAOs teams (Validator, Developer & Community DAOs) to see if there’s outstanding debt from their election cycle and compile that information here for usage if that’s included in the final proposal.
Do you plan to move forward with this proposal @easynode? It would be interesting to run this vote congruent to the BSR vote in order to gain a good sense of where our delegator’s interests lie. I view the two proposals as exclusive of one another. RMC can be funded by something other than block emissions.
I have the same view on this, they are separate issues/votes/topics. I will most likely fully simplify the vote to simply be dropping the 25% redirection from staking rewards though to keep it simple for now.
I haven’t heard many come out against this proposal unless you count the only validator that backs the plan to make the BTC reserve so does anyone know how we’d move this along to the next step?
On the flip side, since no one from Harmony has chimed in yet, how likely are we to have the code updated if any proposal passes?
It’d be pretty brutal to just cancel the entire recovery. I can understand why you’re doing this but hopefully if you propose the HIP then Harmony will come to the table and help sort out a proper solution.
If you wanted to change the code without Harmony doing it then I’d imagine you’d have to fork the code and organise the validators to switch over, which might result in forking the chain into two. At least that’s my understanding but I could be wrong.
There should be no reason Harmony wouldn’t update the emissions if the HIP were to pass. They’ve already demonstrated that it’s feasible to adjust the emission rate.
As for legal liability, why does this keep coming up? There has been no mention of legalities to validators to my knowledge. If validators were legally liable, surely we’d be included in the investigation by now, no?
Let’s push this proposal and prevent the recovery wallet from becoming Harmony’s treasury. Based on the recent Bitcoin Strategic Reserve discussions and Harmony’s lack of contribution, it’s obvious that recovery is no longer the primary purpose of the RMC wallet and it’s beginning to morph into a slush fund without a real plan.
It’s time for validators and delegators to go back to the drawing board. The community can develop a comprehensive strategic plan that’ll maximize the benefits of any future reallocation of emissions.
I agree. We shouldn’t allow what was promised in the original blueprints for the blockchain staking rewards to be swiped for a permanent slush fund for whatever the team that isn’t contributing sees fit.
We have super simplified this proposal and are ready to put it to a vote if we’ve had enough discussion on the topic.
I would guess there is no need for a feasibility review since this was already implemented one way it can easily be reverted, is that correct @theo1@sophoah ?
If we’re ready to go there please let us know and we will assign it a HIP # and get the vote scheduled.
Recovery graphics & 
Harmony BSR (Bitcoin Strategic Reserve) proposal itself is a noble proposal for a buyout of Bitcoin towards 1000x BUIDL’ing.
Harmony has the best path option to very first implement BSR into blockchain workflow.
Great news is : $ONE has already community approved workflow of 25% of 441M $ONE to go to Harmony accelerated recovery and is operational since 2023 which is huge!
Split 441M ONE tokens annual emission: 75% for staking rewards and 25% for $ONE recovery.
So, the workflow update to just allocate those allocation for BSR would be massive and this is thru again 
community led effort.
Would love to see harmony to be ranked to 
Would be happy to contribute 