It doesn’t make you a victim if you volunteer to stay and help out. Just makes you part of the solution.
Most of these projects were just money grabs/rugs in the first place. I feel that’s what happens with these grant programs, it’s like throwing shit at the wall and seeing what sticks.
You’re basically saying that everyone that stayed is a victim. If that’s the case, everyone should leave now. Stop playing the victim.
If you’re here to help with a solution, then stay.
Harmony foundation DID NOT PAY many projects, harmonauts, team members that they said they would pay. What does this have to do with you?
He said, she said = bullshit. Don’t sweat the small stuff.
You volunteered to be a recovery ambassador, that you’re now asking to get funded for. You shouldn’t have volunteered if you didn’t want to talk about recovery. I don’t see the recovery ambassadors getting feedback on this idea.
You’ve been in the community since pre DFK, you should understand how many people got ripped off and forgotten by the team. While they say “keep building, you will get funded” while they simultaneously strip all the self sustainability you’ve been working on (crazy.one domains, bootstrap program)
Yet you’re asking for funding now…
This recovery idea in this thread makes so much more sense than some “ANON” that you’re sharing everywhere. It gets to the root of the problem instead of dragging the recovery out longer than it needs to.
It’s already going to be a lot longer because Harmony Foundation stopped putting anything towards recovery.
Technically anyone that bought depegged assets after the hack are or should be in profit now. Otherwise, what are we even accomplishing with the recovery?
The arbitrage makes it profitable for anyone to burn depegged assets but it’s the actual burning of the assets, lowering circulating supply the increases the value slowly.
The main reason for arbbing is to level out values between exchanges, doesn’t change fair value.
I appreciate your feedback and everything you do for the community
This is Basic price manipulation, to keep Depegged ASSETS at a Low, *Manageable price, its bs and not fair to the HarmonyONE community, lets reward participation. Lets build back DeFi on HarmonyONE,
Why have this dirty, backyard, basement, VIP, Club,
Why not work WITH Recovery.exchange, instead of AGAINST Recovery.exchange.
All I’m Asking/ Begging For is Harmony on HarmonyONE, Tribalism NEEDS to STOP ASAP.
The people that are still hear are Passionate AF.
What are you talking about? “Dirty, backyard, basement, VIP, Club” “tribalism” ??
When was anything said about not working with recovery.exchange?? Where are you getting this from?
Meanwhile you’re actively trying to reallocate Modulo’s allocation to a liquidity incentive program.
When have I made someone feel not welcome in this thread? You was the first person to give negative feedback, yet you’re still welcome to participate.
The goal is to get past recovery 100% and earn back trust that was lost. You’re stuck on rewarding yourself instead of focusing on the issue at hand.
Harmony has given you a platform and has given you credibility. You’ve now started projects and DAO’s so you’ll have a reputation to uphold. They don’t even follow a third of the Validators that support the network and keep it running. Consider yourself lucky.
Just because we don’t always support each other’s ideas or opinions, doesn’t mean we both don’t want what’s best for the future of the Harmony network/community.
This is an addition to the recovery process, delivering a temporary solution to the recent developments concerning recovery. As governance is currently undergoing development, we must continue with non-voting resolutions. The following suggests no changes to the current process, nor any changes to the current partners and Recovery Multisig Custodians (RMC).
To enhance accountability and proceed with funding, recovery partners must adhere to three primary steps:
First, volatility protection.
For partners opting to use centralized exchanges to accumulate pegged assets, upon receiving recovery funds in ONE tokens, recovery partners must exchange them into pegged assets within 48 hours to reduce potential volatility losses.
Second, transparency.
Recovery partners must document all transaction hashes, where possible, in a public document, Google Doc, Excel, Medium post, or any other platform of their choosing, within 24 hours of each step, covering reception of ONE funds, transfers to CEX, exchanges, member funding, and bridging back to Harmony.
Third, recovery.
Final recovery distributions must also be provided within the same document or a separate public document each round, which includes a verifiable log confirming participation has been limited to pre-hack wallets only (e.g., via wallet address verification).
These defined rules provide transparent, auditable paths for community review, minimize perceptions of manipulation during governance development, and continue funding in accordance to HIP-30v2, allowing temporary funding discontinuation if inconsistencies appear after 2 rounds following initiation.
This is a message to the community from Affinity Shard, a representative of the Recovery Multisig Custodians (RMC) regarding recovery.
Hello everyone,
I will try to keep this as short as possible but it won’t be very short in any way as a lot has happened recently involving the recovery process and its partners. I want to start by apologizing for any trouble this has caused anyone. Our intentions as RMC members have always been to simply facilitate the transfer of recovery funds to our recovery partners and until recently we have done this for the most part every month without fail and haven’t asked too many questions or looked too deeply into things as this was not our assigned role. We were however pushed into the need to make decisions several times over the course of our time in RMC, and I will explain everything that I am able in this post, you just have to bear with me through it all and I thank you in advance for that.
I’m sorry that we are even here doing this but due to Recovery1’s recent posts, polls and other unwarranted accusations, as well as the community outcry for us to speak out about what is going on instead of staying silent, I felt it was necessary to provide the full truth, with all context instead of what Recovery1 is doing and posting things with zero context as to what is actually going on. I feel it is necessary to tell you everything and let you the community decide for yourself how you feel about it all.
This leads us to the recent events which have taken place involving the recovery process, the RMC and Recovery1, but first I will attempt to provide a little information and history.
RMC Term 1 started November 2023 and ended in December 2024, All decisions prior to this were made by Term 1 and all decisions after this were made by Term 2 members.
Recovery1 members:
Matthew Barrett
Crypto Quoc
Hound Validator (Hound replaced Pioneer who left the team some time ago due to accusations on both sides about wrongdoing of some sort)
RMC volunteers their services but term 1 did receive the LayerZero airdrop offered to them by the Harmony team in June 2024 unrelated to the recovery funds from staking emissions. Term 2 RMC has received zero compensation in any form. Recovery1 is paid monthly at $3K per month, $1K monthly per member from the recovery funds for a total of 20 months so far, this month July 2025 would mark the 21st month. No other burn partner, RMC member, Ambassador or otherwise other than Recovery1 has ever been paid for the recovery process.
The constant claims by Recovery1 of 33 consecutive months of recovery is false, it is actually 20 months and only consecutive for Recovery1 as they did not have an issue with us making changes back then and sending them 100% of the funds for months now and Modulo getting nothing each month as stated below.
On August 22, 2024, RMC Term 1 had been notified by Theo P. that we were to send 1 Million $ONE to Colossus as a bug bounty concerning the bug discovered by Colossus and Modulo pertaining to the minting of $ONE. Modulo did not require a bounty but we were notified that Stephen Tse wished for RMC to cover the cost of the bounty to Colossus. After much deliberation and back and forth, RMC Term 1 decided to push back and rejected the bounty out of the recovery funds. Instead we told Harmony team they needed to cover the bounty themselves or in some other way otherwise it needed a community vote to deviate the funds for another use. Harmony ended up covering the bounty in the end and RMC was never made to deviate from our operations, which shows our dedication to the community and the recovery process as well as another instance of a need for the RMC to make critical decisions outside our normal scope as you will see more of throughout this text.
The story about Pioneer and Recovery1 as I remember it(for context to the above note):
I provide this story to you simply for reference of the honest facts and am in no way implying foul play on anyone’s part, I just want honesty and transparency to be at the forefront of this entire conversation so that the community has the full context of everything and everyone involved from a community member and validators perspective.
When the hack happened the community and validators were coming up with tons of great ideas for solutions, but Stephen Tse didn’t really want to hear any of them. In the end he kept pushing to go with these guys who had a great idea. Their names were Matthew Barrett and Crypto Quoc and they had an entire resume on why they were qualified in his eyes to do the job.
Where did they come from you ask? They were “community members” who were users of Harmony, Matthew Barrett in finance and Crypto Quoc a developer. They had never been involved before, posted anything or spoken in our talks, but for recovery here they were. Trust, not an issue for Tse, he trusted them completely, but the rest of us, nope he thought we didn’t know how to fix things so he chose them and their idea as one of the main recovery partners when there were plenty of other good ideas floating around in the forums by many other users.
In order to obtain the support of the community they picked up one of our actual trusted community members and developers, Pioneer. We knew his face, we knew his skills, we trusted him to some degree and with him involved we thought this isn’t such a terrible thing now. In order to obtain his and their services, they all agreed on $1000 per month pay for each of them, even though every other position involved would be voluntary.
Pioneer had been a member of Harmoforce with me and many other Harmony community members and was involved in other projects on Harmony so we had gotten to know him well over time. He started having private talks with us about how he wasn’t happy with things going on in the recovery group. We didn’t think much of it at first but over time things got worse and he got angry. He quit the Recovery group, leaving behind an easy $1000 per month for hardly any work other than that he was in charge of communications with the community as it was what he was great at doing.
His reasoning you ask, why would he leave behind free money? He screamed foul play, and that there was something nefarious going on behind the scenes that he just couldn’t quite pinpoint that I know of but he didn’t want to be involved. So he quit the group.
Their response? Their response was to in turn, accuse him of the very thing he had just quit and accused them of doing. They accused him of foul play with the funds or something similar. The argument went back and forth on social media for a while but ended up leading nowhere before Pioneer eventually left Harmony and the talks and everything was just forgotten over time.
Recovery 1 hired Hound for the $1000 pay in Pioneers place. Now lets talk about Hound. I don’t know too much about him but I do know he has invested some time into being a validator and volunteering for things in the past. He had at one point started his own token on Harmony called $Hound. He offered the idea that he was already involved in real estate and would give returns from that to the token holders. So I bought in on some. Months, maybe a year went by and nothing at all happened, except that I noticed he pulled all liquidity from swap.harmony.one and rug pulled the holders completely. I complained to him and he privately made it right for me by sending me the quantity in $ONE of my original purchase, but the other holders? I’m not sure. Was this intentional fraud? No probably not, but negligent and irresponsible? Yes! I would say my trust in him was diminished long ago, just like the other 2 appearing out of thin air with Stephens trust when the rest of us didn’t know them at all. Though these things were in the back of my mind, I set my personal opinions and lack of trust in them aside for the greater good of the community and continued recovery without issue, until something came up that warranted further review.
Now on to the details of the situation at hand:
Originally when the recovery process was first created between July and November 2023 there were 3 burn partners total as far as I’m aware, which were Recovery1, Tranquil and Modulo. RMC Multisig has only ever sent to 2 partners as Tranquil was never an RMC burn partner. Our first transaction took place on November 14, 2023 and we sent equal funds to Recovery1 and Modulo, which stopped the following month in December 2023 when RMC were notified of a Harmony bug found and exploited by Aaron, the creator of Modulo. He was able to somehow use an exploit to mint $ONE into existence and was then accused by Caseyga.eth (Ex Harmony team member) of attempting to get away with selling these minted funds on an exchange. Aaron of Modulo however stated that he did the right thing, burned it and notified Harmony team and stopped it from further damaging Harmony and the ecosystem. Theo P. of Harmony team spoke with the RMC members and together we determined it best to hold off payment to Modulo until we figured out what was going on. So on December 22, 2023 we sent full funds for that month to Recovery1 and none to Modulo. All of this can be seen on chain in the multisig address provided.
By the next month we had determined everything had been settled and that it seemed Aaron of Modulo was cleared of wrongdoing and was able to continue as a recovery partner for months until April 2024 when we noticed Modulo was not burning all of their funds each month and was building up funds over time. This was due to their recovery mechanics relying on $ONE price appreciation and that at the time was just not happening so the funds were being accumulated and unused. This is when we decided, in an attempt to keep recovery flowing, to start funding Modulo a lower % and fund Recovery1 more each month. Over time Modulo was still not performing as intended originally and the funds were accumulating each month. We decided in October 2024 to fund Recovery1 group 100% and Modulo nothing as it was not exchanging funds and had no need to receive more. On October 11, 2024 and every month since then we have funded Recovery1 100% of monthly funds all the way until the last monthly payment they received on June 17, 2025.
After sending the May 2025 funds to Recovery1 it was brought to our attention on May 17, 2025 that RMC sent over about 160K in $ONE that month and Recovery.exchange received 135K in funds. After some deliberation on the issue we were informed this had been happening consistently for months or possibly longer which was not known to us prior to this. Price fluctuations happen as well as transaction fees so it is expected for it to be up or down some from the original $ONE sent, but to be consistently down each month, we believe deserved some questioning at the very least.
We spoke with Theo P. of the Harmony team about this and determined it would be best to request proof of transactions from Recovery1 team for the latest funds sent in May. We requested the information and they did, after several days respond with some basic information in a spreadsheet laying out each of the $ONE sales spread out into multiple sells. To my knowledge not much other information or transaction hashes were provided. We looked over the information provided as thoroughly as possible but as none of us are experts in understanding exactly what we were looking at while at the same time not having access to all data needed, we were not able to definitively determine that we were satisfied with what was provided. We in no way were accusing them of anything, but at the same time, we did not have everything needed to be satisfied that it was transparent enough to trust and understand where the lost funds were going. We were informed by Theo P. that there are no reporting requirement so we could not force them to provide more information at the current time without making changes.
Since May we have been working together and with Theo P. to try to find a solution to all of this but it hasn’t been a fast or easy process. On May 21, 2025 is the first time Tenacious Defi and MetaONE KLAS, members of RMC and Crypto Land DAO, offered the idea to write up a possible recovery solution to add another partner while we were waiting on answers from Recovery1 about where the funds were going each month. Over the next couple weeks into early June 2025 we were discussing possible options including speaking with Theo P. from Harmony team who helped us come up with some ideas for future recovery plans. With Snapshot no longer working for voting we had to talk about voting as well, how and where we would vote and we needed to come up with a plan to present to the community for voting, once voting is fixed.
On June 12, 2025 Theo P. notified us that if we got a proposal up they would push to get snapshot fixed or a fork created quickly so that we could have the community vote. Theo P. also suggested on June 12 2025 that we try to set up RMC as a paid position in future proposals for recovery, which I don’t believe we’ve ever really spoken about since then because we made it very clear that being paid was not something we were seeking at all and that there were much bigger objectives to tackle than that. I’m proud of all of the RMC members for never asking for pay and always showing their dedication and support to Harmony and the recovery process through their volunteer work. You have all been amazing, thank you for your time and efforts to protect users and get recovery completed in the best way possible.
On June 16, 2025 MetaONE KLAS notified us that their proposal was ready and Theo P. reminded them that a partner cannot be an RMC member as it is a conflict of interest and they(CLD - Tenacious and MetaONE) agreed that they know and are willing to step down if they get approved by the community as a partner after voting.
On June 17, 2025 after much back and forth on what to do and whether or not to keep waiting for a solution to be posted, we were now 1 week after the monthly initiation date of sending funds to Recovery1 with no clear solution in place for either voting or a temporary fix yet, so we voted to send funds one more time without making changes, so the last couple signers signed off and the funds were sent. TenaciousDefi made it clear to Theo P. that it would be his last time signing until they get some sort of solution to the original issue, which was a discrepancy in the funding of Recovery1 and our desire to know more before continuing to send them all the funds as our only recovery partner.
Then on June 19, 2025 Recovery1 made a Rogue move breaking protocol saying:
Please keep in mind that the funds were sent on June 17, 2025 and the previous months funds were sent on May 14, 2025, just 3 days earlier the month before, so how 3 days on a multisignature sending of funds is a big delay is beyond my understanding, as it could take days sometimes for all signers to sign a transaction, and we are all volunteers after all. They decided to just burn 20% of all funds themselves rather than make full funds available for the community. This only made things worse for confidence of Recovery1 within RMC group.
On June 23, 2025 we were notified by Theo P. that Yuriy is tasked with the development of SnapshotX, a fork of snapshot, so that we will be able to vote again when it is complete. This is promising but will take some time to get completed.
Since then we have been working together with Theo P. to try and formulate a plan on how to move forward with recovery without voting. As it stands we do not have the ability to use snapshot for voting the way we always have in the past due to changes with snapshot and are waiting on the development of snapshotx from Harmony team.
On July 10, 2025 we got an update that snapshotX was in testing and voting strategies were being tested so progress was being made but no eta yet. As far as the July 2025 monthly RMC funds to be sent to Recovery1, it was made clear by TenaciousDefi and others immediately upon sending funds in June, that they would not facilitate another transaction in July without something solid to work with as an agreement from Harmony team or until Harmony team quickly got voting fixed. Since June as stated, we have worked together to come up with a temporary solution and ideas for more permanent solutions.
On July 16, 2025 Theo P. notified us that Recovery1 was working on a new proposal draft for themselves and that he was working on a draft as well for the use of the old 200M validator initiative funds left over and sitting idle to be used to possibly complete recovery, which is 260M $ONE currently but would need approved for use. With both of these proposals, as well as the proposals from the other possible future burn partners, we knew we now have the proposals for when voting is fixed, but for now we know something needs done in the meantime.
As for a solution for the time being, to keep thing moving and not halt recovery longer, Harmony team will be posting updated terms for recovery partners which is our requirement moving forward to keep recovery moving until voting is fixed. I hope that these requirement alone make clear our intentions as members of the RMC and why we did what we did leading up to all of this being posted for the community. We are here to send funds each month, yes, but we also felt like the only standing barrier and defense against any possible current or even future issues related to lack of transparency and use of community funds for recovery.
This is what leads us to now as I’m writing this, July 23, 2025, we are 2 weeks past the July transaction initiation date, and a little over 1 week past when we usually have the transaction completed and sent to Recovery1. Anyone who thinks we are extremely late is simply due to the aggressive tactics used recently by Recovery1 to strong arm us into sending them the funds over. They have used every tactic possible recently to try to paint RMC in a negative light and point us out as rogue and breaking the rules and not following the HIP. None of this is true and the story runs extremely deep compared to the way they have presented it.
To anyone who didn’t notice already, just look at Recovery1’s socials since they stopped receiving funding, their posts and messages have increased drastically and Quoc has likely posted for the first time publicly in years when he posted his story of recovery. On top of that their aggressive demands for funding as well as their aggressive dishonest tactics in community outreach on the subject have together shown a clear intent to seek out funding and pay, even if they have to set aside honesty and integrity in the process and I will demonstrate exactly why I believe this to be true.
If you look at their messages in the Community Telegram, Recovery Telegram or their X posts recently you will notice a lot of negative comments towards RMC and our operations, as well as the fact that we haven’t funded them yet. All the while we were in communication with them and Harmony team, working towards a solution, but that wasn’t good enough for them so they fought even harder in the public eye for the funding.
On July 17, 2025 Recovery1 posted a poll in the Harmony Community Telegram asking users:
”Do you support the RMC stopping recovery operations in July 2025, after 33 consecutive months of recovery?” You would think this is a one time mistake, but no, they have consistently claimed 33 or 34 months of recovery recently in posts all over. That is just the beginning but it is a mistake made consistently none the less.
The poll itself is extremely vague and leaves out all of the context I provided to you today, stating simply and implying that “RMC wishes to permanently stop recovery in July 2025 after 33 months of recovery”. Of course as you can see this is in no way true, but their intentions in the poll weren’t to get everyone to know the truth about what was going on, their goal was to get you to vote NO so that they could get their funding by presenting this poll to us and to Harmony team. The best way to get you to vote no is to provide zero context to what was going on and just imply that RMC have gone rogue and need to be put in check and made to not stop recovery permanently.
They could have provided context to what was going on, asked us to join in a talk with the community about the subject, or simply waited for further guidance on what was going on from the Harmony team, but instead they started a negative pressure campaign against RMC group to strong arm their funding, as they receive $1000 each per month as pay when we send funds to them.
That leads me to the next subject, where RMC has now found that the payments that Recovery1 has decided to collect this entire time, while no other partners or people involved receive funding, is nowhere in the HIP, in any documentation or anywhere that we could find that the community voted to pay Recovery1. It looks like they just decided to take the funding from the start as a fee for being a recovery partner. Li Jiang of Harmony team has recently confirmed that Harmony team offered them a one time grant for the work but did not approve reoccurring monthly funding, though he did say that the team had no oversight on Recovery1 internal decisions. Nowhere in the HIP does it say anything about funding for the recovery partners that we could find. Somehow this detail slipped past everyone when setting up the recovery process and I guess we all just assumed it was voted on somewhere.
Due to the above fact about the payments to Recovery1 not being voted on by the community or validators, we are formally requesting that Recovery1 group, immediately stop any and all future payments to yourselves when receiving recovery funds. If you wish to receive these payments for services rendered, you are welcome to put up a proposal along side everyone else and have the community vote on it. Thank you for your cooperation in this matter. We do appreciate your time as our only remaining recovery partner at the moment, and we hope that you kindly accept all previous payments as enough to satisfy your obligations to the current recovery plan.
I personally would like to request an apology from you, Recovery1, for your actions against RMC and your lack of accurate information, as well as your lack of patience and understanding in this situation, causing you to go on a pressure campaign against us and post false and misleading questions and comments which lacked enough detail for any person to be expected to make a reasonable decision in the matter, causing panic and chaos within the community that you claim to protect.
Thank you everyone for your time,
Affinity Shard
Update:
Here is the link to the terms above involving recovery partner integrity moving forward, posted by Theo P. of the Harmony team.
I’m not sure this whole ‘non-voting changes’ thing is binding when Harmony has no skin in the game.
Any changes need to go through governance.
Why force them to exchange so fast when it can impact the market?
In fact, why are we exchanging? Give $ONE at the full rate and let’s get this done!!!
If we’re going to pathetically keep exchanging let @HoundOne_Validator work. He does a fantastic job of exchanging assets without impacting the market. Anyone who thinks his actions have impacted the market should reach out to him as he was transparent and glad to share the process with me when I asked about it.
Rushing this work will cause an impact on price in the future if there’s no volume.
Stay on chain. Automate. Don’t fuck around off chain?
I want to share my thoughts with the goal of helping… not blaming anyone.
I truly respect the effort of everyone involved, including the RMC and the Recovery1 team. Thank you for your hard work so far.
Since the first day after the Horizon Bridge hack, I’ve been sharing my view… and I believe it’s time for this idea to be taken seriously.
The funds from HIP30v2 are public funds. They belong to all delegators who support Harmony and keep believing in this network. Because this is public money, we need to treat it with high responsibility just like non-profit organizations do. That means having clear monthly reports, showing how the money is used, and allowing the community to verify everything.
These funds should support real recovery actions … helping projects that bring utility to Harmony’s DeFi and burn depegged assets from the network.
All partners who receive funds from HIP30v2 should:
Focus only on helping the recovery and burning depegged assets.
Send monthly reports with on-chain proof of what they are doing.
Also, some DEXes still hold a lot of depegged tokens in inactive pools. This makes recovery harder. We need to fix that too… liquidity is essential.
Right now, RMC is doing an important job, but it can be improved. It’s their duty to manage, track, and verify every single cent coming from HIP30v2. To help with that, I suggest:
Give clear roles to each RMC member.
Ask for detailed reports from every project that gets funding.
Support transparency at every level.
Lastly, we should create a “review board” to check new project proposals. Each proposal should explain:
How it helps recovery.
How the team will get paid from their own system or product — not from HIP30v2.
Let’s make sure this public money is used wisely, with full transparency, and only to help Harmony recover stronger.
To avoid being too vague, I’d like to go deeper into how the RMC could manage the HIP30v2 funds more effectively , based on my ideas and what many community members have been discussing.
First of all, let’s remember: these funds MUST be used — this was already approved by governance and validators voted for it. So, the RMC should not simply hold funds, but rather distribute them regularly , making sure they go to partners who are truly aligned with the goal of recovery and who bring real efficiency in burning depegged assets and helping the network heal.
As we saw with Tranquil and Modulo, and thanks to RMC for correcting the approach, every partner should reapply for funding each round . This will encourage projects to keep improving and competing based on results, self-regulating to deliver the best performance for the recovery program.
Also, it’s essential that:
No RMC member is appointed by the Harmony core team , to avoid any conflict of interest .
RMC members cannot be involved with projects that receive HIP30v2 funds.
Each role remains independent and strategic to keep things fair and transparent.
The RMC should remain community-elected , but also have autonomy to decide how, when, and how much to allocate to each partner… based on results, transparency, and clear contribution to recovery.
Once RMC allocates funds, they should focus on converting depegged assets into real value… whether that means $ONE or stablecoins. Each partner can define how to distribute that value to users, but the goal must always be impact and fairness .
Regarding Recovery.Exchange: I supported limiting it to pre-hack valid wallets , and I still agree with that. But I personally disagree with including r1 voters , because the process was unclear and controversial. Still, let’s be honest: Recovery.Exchange is just one tool , and we should keep the door open to new ideas and new solutions from others in the community.
Finally, let’s address a big problem: the “friends of the king” culture must end . Harmony doesn’t need favoritism… it needs collaboration, fairness, and open doors.
We should welcome any project that involves the wider community , because recovery isn’t just about helping a few… it’s about restoring the trust and value for everyone , especially the delegators who made HIP30v2 possible .
Let’s make this recovery process open, fair, transparent, and efficient… that’s the only way forward.
On behalf of Recovery ONE, I want to address AffinityShard’s recent statement.
Clarifying How Recovery ONE Started
Recovery ONE wasn’t “picked” or “installed” by Harmony or Stephen Tse — it formed organically. Before the Horizon Bridge hack, I was a silent investor and an active observer in the community, even attending the first DAO initiative meeting. After the hack, I stepped forward, believing I could help by contributing ideas. My early posts and proposals are still documented in Harmony Talk and the forum archives.
Soon after, Quoc reached out, and we began brainstorming. Those early sessions led to the co-founding of Recovery ONE — later joined by Logan, Mike, and eventually Hound. From day one, our mission has been clear: recover depegged assets and strengthen the Harmony ecosystem through community action.
We’ve consistently engaged the community via polls, forums, social channels, ambassador programs, burn reports, and GitBook updates.
Addressing Integrity Concerns
We share the same concerns as Harmony has expressed regarding a conflict of interest in the current RMC structure. Also, one public issue remains unresolved: a former R1 Ambassador and active RMC member still holds access to an R1 social media account and has refused to return it. We’ve also seen public posts from the RMC members misrepresenting events from May and June. These posts are misleading, and we have proactively clarified that misinformation when necessary.
33 Months of Recovery, Not 20
The claim that Recovery ONE contributed only 20 months is incorrect. We began operations in September 2022 and started burning in October 2022. All records — burn logs, exchange data, and public summaries — are available. See details here.
Compensation
Our compensation $1,000/month per steering member has been public since inception and reflected in all reports. We believe this structure is fair for the level of transparency, consistency, and workload over 33 months. It has enabled continuity through changing markets, while executing burns, managing comms, and supporting the coordination of different recovery programs. Last month, each steering member received $500 due to the $ONE token reaching a four-year low.
Clarifying Team History
R1’s early formation faced challenges. There were initial tensions around alignment, including a conflict of interest with Fuzz Finance, disagreements over code access, and inappropriate comments that created friction. When internal disagreements escalated — including an attempt to remove Quoc — I stood against it, prioritizing the mission. Ultimately, Mike and Logan chose to exit the project. We later added Hound due to his validator background and support for recovery. Every step has shaped us into a more focused, resilient team committed to the recovery mission
May & June 2025 Disbursements
In May and June 2025, the $ONE token reached a four-year low. This period of heightened market volatility significantly impacted Hound’s ability to execute exchanges at scale. The $ONE token declined in value alongside broader market collapse. All related transactions were documented and shared with the RMC. Hound also addressed the situation publicly, and a complete burn report, including supporting spreadsheets.
In June, a direct buyback and burn of 20% of the allocation was executed in response to deteriorating market conditions. This decision was communicated after completion to prevent potential front-running. While the current burn plan framework allows for such discretion, we acknowledge that interpretations may vary. The remaining funds were exchanged for USDC during the market downturn, when $ONE was trading at its lowest point in four years.
Despite our transparency, some RMC members publicly mischaracterized these events, falsely suggesting that our actions contributed to the sell-off. This is simply incorrect. We did not sell during the sell-off period, and these claims were not made in good faith. Such statements risked undermining community trust, and we took proactive steps to address the misinformation on social platforms. Unfortunately, those comments continued for some time. What was the motive? While we’re thankful that Kratos eventually stopped supporting and spreading these false narratives, it’s understandable that our trust in the RMC was damaged at that point.
Modulo’s Status
Modulo remains active.
Governance and Path Forward
We have supported adding a third burn partner for a long time, and we believe all partners must be doxxed, vetted, and aligned with the burn plan. We support the launch of SnapshotX and the return of governance voting, and we’ve been clear that building these tools takes time. In the meantime, we should continue with the burn plan and timelines set by the RMC. We also support the new Harmony Adherence Steps and the requirement for monthly reporting.
Looking Ahead
We’re aligned with Harmony’s updated Adherence framework. We’re committed to reconciling with the RMC, strengthening reporting and transparency standards, and continuing to work in good faith toward our shared recovery goals.
All of this may be true, except that everyone involved back then knows that while there were a lot of good ideas, some people from the Harmony team specifically kept pushing for your plan for some reason even though none of us knew any of you at the time and didn’t have any reason to trust you or your plan yet. It turns out we found out later that Quoc had done dev work for Harmony team prior to recovery so he was already known by the team. So there was some form of favoritism there, despite what you might say, everyone who was around back then knows this is true. I apologize for forgetting about Mike Otis and his story in the team but it was long ago, I’m sure others may have more information to this part of the story than myself if anyone is interested in going down that road.
There is NO conflict of interest in the current RMC structure, this is misinformation to scare the community. I asked the Harmony team directly and got a direct response back from them that the only conflict of interest would be if one of the RMC members were to become a recovery partner as a couple have proposed, in which case they would step down from the RMC to become a recovery partner, making any conflict of interest null and void. There simply is NO conflict of interest in the RMC, this is a fact confirmed by Harmony team. I like how you were purposely vague about the statement on what the conflict of interest was, great tactic, but I saw right through it, sorry.
What RMC member that was an ambassador still holds a social media hostage? I have zero knowledge of this, we should get this handled right away as no one should be holding any social media accounts hostage.
I looked into this further and found that we are both right in regards to what we were speaking on. RMC has been around for 21 months as part of recovery, so the statement you made about RMC stopping recovery after 33 months was correct in the fact that Recovery1 has been involved in recovery (funded by the Harmony team) for 12 months longer than the RMC has been in existence and part of the recovery process. The statement being directed towards RMC however was unfair in the fact that it implied that “RMC wanted to permanently stop recovery after 33 months of recovery”. We have only been involved for 21 months, but that part I understand now so that isn’t the concern, the concern is that we did not ever wish to permanently stop recovery and only wished to come up with a better solution that we could all trust.
I do not believe that the recovery1 team for the last 33 months has done enough work each month to justify that much pay, but since there are not detailed reports of everything, we cannot say one way or the other. I will say that with the new future reporting requirements I am not against some pay for anyone involved in the recovery process who needs to do a lot of reporting each month of recovery. I think that as soon as voting is fixed we should vote on the future of recovery and if the plan includes partners, we should determine as a community what those partners should be paid for their work. Thank you for taking reduced pay last round as it is actually appreciated.
This is a very deep topic that I will let you and the community deal with if they are interested in knowing more. I will not dive deeper into this, I just wished for the community to know as much context as possible, that was my only intent here. I wanted to try to recollect all that I could remember from the history of this recovery process without writing any larger of a book than I already had.
As I stated above, Hound did provide basic reports but it wasn’t all of the transactions from start to finish so that the funds could be tracked that I am aware of so it wasn’t enough to satisfy us. The next step was for us to question, how can we get to know more? That is when the process started that got us to where we are now, with more reporting requirements.
That is not what you told the community:
In this post on X you said the following:
“Due to the RMC delay and shortened burn period, R1 accelerated the burning of depegged assets by allocating 20% of monthly funds to buy depegged assets on-chain.” https://x.com/recoveryonefdn/status/1935550291740405988
Yet I responded with this above because that simply wasn’t true:
This directly shows what I was speaking about on how you were for some reason on attack mode against RMC group, attempting to get your funding faster by publicly pressuring the community into pressuring RMC, by providing vague and inaccurate information, which led to the community posting negative comments about RMC group as if we were doing something wrong. All of this could have been avoided had you simply been more patient and followed our and Harmony teams advice to wait for more information.
I’m not aware of any RMC members saying that but if they did it most likely was just one person’s personal opinion on it. RMC never as a group accused you in any way of this so I’m not sure why you would think this was all of our opinion. I also have nothing to do with Kratos and his opinions so you will have to speak to him to ask why he posted what he did.
Modulo might be still a burn partner but transactions don’t lie, look at our multisig, Modulo has not participated in months and you know that so no, they are not active, we can barely even get Aaron to respond on when he plans to reactivate modulo to the recovery process.
Thank you for accepting the terms for transparency and reporting set forth by RMC and the Harmony team, but you have failed to acknowledge the payment issue in detail or to address my concern that you have for no good reason went on the attack of RMC to get your funds faster, when there is no clear or justified reason to do so. I still believe an apology is in order if as you say, you are committed to reconciling with the RMC.
The problem here Hound, is that RMC and Harmony team attempted to handle all of this without involving the community. Recovery1 started a public assault on RMC to pressure us into getting your funds, which led to negative misinformation about RMC. This misinformation is what caused me to have to make a public post about it as Recovery1 was not willing to simply quietly wait for RMC and Harmony team to come to a conclusion and provide more information to Recovery1.
The entire reason that we are here, speaking about this is because of Recovery1’s actions, so no, to me this is not senseless, this has been forced upon us to defend ourselves from your actions.
If Recovery1 had acted in a professional manner from the beginning this would all have been fully resolved by now without the need for any public backlash on either end. Once again you are acting childish and attempting to completely ignore our questions about pay rather than just simply stating that you refuse to give up pay.
We all can see at this point the pay is more important to you than anything else, including recovery, it’s glaringly obvious, so go ahead, do what you know you are going to do. Tell the community you refuse to give up pay until they are given their right to vote on it rather than you taking it because you feel you deserve it.
For is Harmony 
