Proposal: Launching Harmony’s Bitcoin Strategic Reserve (BSR) in January 2025

Community
21

The significance of Harmony Bitcoin Strategic Reserve is utmost.

Here, for the Harmony community since day ONE , got voted to be a part of Recovery Multisig unanimously for R1Ambassadors prior, & happily withdrawn so this could go to the promising next ONE builder.

Proudly motivating builders and community since 202ONE.

Would like Harmony and community to succeed 1000x and we have a huge opportunity NOW to establish BSR for 1000x community building.

Been myself a :top: HODL’er of 81M $ONE and a validator, saying on behalf of the rest of the delegators who have put hard earned to ONE, the significance of Harmony Bitcoin Strategic Reserve is utmost.

If, we are completely not OK with 25% allocation as a starter, just allocating at least a fewer percentage (1%~5%) would be game changer and then slowly increase the percentage over time as we continue see the Bitcoin initiative being successful.

https://x.com/kratos_harmony/status/1867287280777613491

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22

MicroStrategy to enter Nasdaq :one::zero::zero:

“MicroStrategy (MSTR) is set to soon be included in of the world’s largest exchange-traded funds after becoming the first bitcoin-centric company to win entry into the Nasdaq-100 Index.”

Reference:

“”"
Huge Congratulations to Michael Saylor :tada:

https://x.com/kratos_harmony/status/1867739585406554545

:100: Adhering , :us: Harmony proposal for establishment of Bitcoin Strategic Reserve commencing in Jan 2025

:us: ONE deserves to be listed on coinbase krakenpro Gemini to support Bitcoin Strategic Initiative :pray:

AMERICA IS EMBRACING BITCOIN LIKE NEVER BEFORE :us:

:white_check_mark: Harmony Bitcoin Strategic Reserve is a pivotal step toward a sustainable, resilient, and innovative future for Harmony, positioning Harmony as a leader in blockchain innovation & recognize Harmony as Bitcoin Standard Company, following the novel footstep of MicroStrategy / saylor

Implementation Plan :rocket:

:ballot_box_with_check: Preparation Phase (December 2024)
:writing_hand: Conduct community engagement via AMAs, Medium articles, and social media to explain the initiative and gather feedback.

:ballot_box_with_check: Launch Phase (January 2025)
:writing_hand: Begin allocating 25% of RMC funds to coinbase cbBTC and 75% to recovery efforts with the first distribution of Recovery Round 28.
:writing_hand: Conduct the first coinbase cbBTC purchases on Base and deposit them into the Recovery One multisig wallet.

:ballot_box_with_check: Reporting and Monitoring
:writing_hand: Publish monthly reports on cbBTC acquisitions, reserve growth, and recovery fund usage.

Motivation:

:heavy_check_mark: The long-term financial resilience of ONE by leveraging Bitcoin’s unparalleled store of value.
:heavy_check_mark: 25% of monthly recovery funds will be dedicated to acquiring Coinbase Wrapped Bitcoin (cbBTC) to build Harmony’s Bitcoin Strategic Reserve
:heavy_check_mark: cbBTC holdings will be visible on-chain and regular reporting to the community to showcase Harmony as Bitcoin Standard Company
:heavy_check_mark: Harmony being “backed by Bitcoin” attracts global attention, fostering growth in community participation, exchange listings, and institutional interests.

“”"

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23

Harmony is going to have a novel exposure to the world of Bitcoin adoption along with the Harmony Bitcoin Strategic Reserve in establishment.

“ChatGPT estimates 200 million people globally have exposure to the QQQ through different financial products and funds. They now have exposure to Bitcoin via MSTR. Saylor just executed the single biggest onboarding event in Bitcoin history. What a legend!”

https://x.com/DavidFBailey/status/1867744361729216962

2 Likes
24

Crypto_LandDAO began purchasing cbBTC and pairing it with $WAGE on Base-chain, this has proven to be a more resilient pair, on large market swings.
So :blue_heart: Crypto_LandDAO strategy, for the past 6 week’s has been to sell the WAGE, on HarmonyONE, during favorable market conditions and then purchase cbBTC and pair it with WAGE.

THIS allows Crypto_LandDAO to purchase a more [ HARD ] asset, for long-term stability, during market cycles.

HarmonyONE [ BSR ] Proposal,
is similar, however, it will be more of a DCA (Dollar Cost Average) on a Monthly Basis with ONE Emissions from
[ HIP30V2 ] [ 25% of 100M ONE Annually ]

Recovery = Recovery
Remove *Bad Debts, & Purchase [ Bitcoin ]

A Proven Strategy, over the past 4 years.

HarmonyONE is in a Unique position, to follow the trend,
Yet also lead the way in The DeFi Space.

Finally, purchasing & storing Bitcoin on BASE, may lead the way to having ONE listed on Coinbase [ CEX ] $ONE of Leading Centralized Exchanges :blue_heart:
-Tenacious_DeFi

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25

What make Microsoft declined “Bitcoin” even M. Saylor approach them directly to buy bitcoin ?

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26

Sonny_Masterson

Recovery One Foundation (R1) is a community-led organization that facilitates community-driven action. The community requested the Strategic Bitcoin Reserve (SBR), and we are facilitating that request.

R1 remains steadfast in its core mission of recovering depegged assets and restoring Harmony’s ecosystem.

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27

FortuneValidator

Understood. It will go to a vote, and the community will make its choice.

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28

easynode

HIP30v2 Framework

Under HIP30v2, any addition of a new recovery partner, such as the Harmony Community: Strategic Bitcoin Reserve (HCSBR), would require a new Snapshot vote, even for small allocations like 5% or 10%.

Recovery Remains the Priority

Unlike many projects that move on or fail to act after similar challenges, Harmony took full responsibility for the hack and committed to its community. Through HIP30v2, recovery was codified.

Investor Confidence

As a recovery partner, Recovery One has received inquiries from large investors who recognize Harmony’s commitment to its community and recovery process.

Transparency and Progress Reports

Recovery One regularly publishes reports detailing recovery progress, fund usage, and burn activity. You can review these updates here:

Mitigating Risks

We have some great suggestions above, which we will include in Proposal Draft 2 to addresses concerns about market timing and third-party risks by:

  • Using on-chain multisig wallets for transparency and decentralization.
  • Gradually acquiring Bitcoin via a Time-Weighted Average Price (TWAP) strategy to reduce volatility and avoid large market impacts.
  • Ensuring all funds are managed by Recovery One and elected community representatives.
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29

ValidatorONE

Will do.

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30

GoodTimesBrad

Recovery One has exchanged 100%, while Modulo has been holding onto its ONE in its treasury for 10 months. They have just resumed activity, allowing their RMC allocation to enter the Harmony ecosystem.

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31

Aligning with Bitcoin’s prevailing market trend is a strategic approach to resource allocation, leveraging its dominance and market movements for long-term value creation.

1 Like
32

https://x.com/matthewtbarrett/status/1868596486696735224

image
image659×675 81.7 KB

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33

Proposal: Launching the Harmony Strategic Bitcoin Reserve (HSBR) in Q1 2025 v2

Note: This is a proposal and draft, subject to modification based on community input. It is intended to spark serious discussions and encourage thoughtful consideration.

Introduction

The Recovery One Foundation proposes the creation of a new recovery partner: the Harmony Strategic Bitcoin Reserve (HSBR), which will replace Tranquil Finance as part of Harmony’s recovery framework. This change will be introduced in Q1 2025, following a Harmony Improvement Proposal (HIP) vote to secure community approval.

Under the HIP30v2 framework, the Harmony Strategic Bitcoin Reserve (HSBR) would receive 5% of monthly recovery funds, allocated by the Recovery Multisig Committee (RMC), to acquire Bitcoin gradually. The remaining 95% of monthly recovery funds will continue to focus on burning operations to restore depegged assets.

This balanced approach ensures Harmony addresses immediate recovery needs and long-term financial stability.

Rationale

The Harmony Strategic Bitcoin Reserve (HSBR) leverages Bitcoin’s role as a globally recognized store of value, providing Harmony with a stable financial reserve that strengthens its ecosystem and builds trust among community members and stakeholders.

Once recovery is complete, the Harmony Strategic Bitcoin Reserve (HSBR) will remain under the control of the RMC. Any continuation of funding for the HSBR beyond the recovery phase will require a new HIP vote, ensuring community oversight and approval.

HIP Approval Requirements

A Harmony Improvement Proposal (HIP) vote is required to implement this initiative. The community will vote to approve:

  1. Creation of a new recovery partner: The Harmony Strategic Bitcoin Reserve (HSBR), replacing Tranquil Finance.
  2. Allocation of monthly recovery funds by the RMC to HSBR:
  • 5% dedicated to Bitcoin acquisitions for the HSBR.
  • 95% directed toward burning operations to restore depegged assets.
  1. Commitment to Post-Recovery Governance:
  • Once recovery is complete, the Harmony Strategic Bitcoin Reserve (HSBR) will remain under the control of the RMC.
  • Any continuation of funding for the HSBR beyond the recovery phase will require a new HIP vote.

This vote ensures full transparency and community participation in decisions about fund allocation and Harmony’s long-term financial strategy.

Community Vote

Do you support the creation of a new recovery partner: the Harmony Strategic Bitcoin Reserve (HSBR), replacing Tranquil Finance and receiving 5% of the monthly RMC allocation?

Snapshot Vote Options:

  • Yes
  • No

Operational Mechanism

Monthly Fund Allocations by the RMC

Starting in Q1 2025 (Recovery Round 28), the Recovery Multisig Committee (RMC) will allocate recovery funds monthly as follows:

  • 5% of monthly recovery funds will be allocated to Bitcoin acquisitions under the HSBR.
  • 95% of monthly recovery funds will remain dedicated to burning operations, ensuring depegged asset restoration stays the top priority.

The RMC will oversee and report on fund allocations to ensure full transparency and alignment with the community-approved framework.

Replacing Tranquil Finance with HCSBR

Replacing Tranquil Finance with the Harmony Strategic Bitcoin Reserve (HSBR) represents a significant step in Harmony’s recovery process. The HSBRwill:

  • Replace Tranquil Finance as the designated recovery partner.
  • Manage the 5% fund allocation for Bitcoin acquisitions on-chain.
  • To ensure accountability, operate with multisig wallet governance, community oversight mechanisms, and transparent reporting.

This transition prioritizes Harmony’s long-term sustainability while keeping its focus on restoring debts.

Recovery Acceleration Strategy

Best-Case Scenario

  • Faster Depegged Asset Restoration: With 95% of funds allocated to burning operations, recovery progress remains uninterrupted, reducing the time needed to restore depegged assets.
  • BSR Value Growth: The 5% allocation to Bitcoin, executed monthly, builds a Bitcoin-backed reserve that grows in value over time, providing a long-term financial safety net.
  • Improved Ecosystem Trust: The narrative of Harmony being “backed by Bitcoin” and the “Harmony Strategic Bitcoin Reserve” attracts developers, users, and institutional partners, accelerating growth and recovery.

Worst-Case Scenario

  • Minimal Recovery Impact: Even during a prolonged Bitcoin price decline, the 95% allocation to burning operations ensures Harmony’s recovery remains unaffected.
  • Stability Mechanism: The Bitcoin reserve provides a fallback mechanism to protect Harmony’s ecosystem, even under challenging conditions.

Wallet and Governance Structure

Dedicated Multisig Wallet

  • A dedicated multisig wallet with 5-7 signatories will securely manage Bitcoin reserves.
  • Transactions will require 4/5 or 5/7 signatories, ensuring decentralized control and accountability.

Signatory Composition

  • 2 Recovery One Foundation members.
  • 2 elected community representatives.
  • 1-2 independent blockchain experts or Harmony Core Team members.

Community Governance Enhancements

  • Community representatives will rotate annually through transparent elections.
  • Major strategy updates or wallet governance changes will require a community Snapshot vote.

Security Measures

On-Chain Transparency

  • All fund conversions and Bitcoin acquisitions will occur on-chain, eliminating reliance on off-chain systems.
  • Use Harmony’s native DEX or cross-chain solutions (e.g., Layer Zero) to execute Bitcoin in cbBTC purchases with full traceability.

Decentralized Custody

  • Bitcoin acquisitions will be stored as cbBTC or wrapped Bitcoin (wBTC) to ensure custody transparency and blockchain interoperability.
  • The Bitcoin reserve will be secured in a multisig wallet on Harmony or compatible Layer 2 infrastructure.

Risk Mitigation

  • Conduct periodic audits of wallet activity.
  • Rotate signatories annually to maintain decentralized security.

Post-Recovery Governance

After recovery efforts are fully completed:

  1. Unused Funds: Any unallocated or unused funds will revert to the Recovery Multisig Committee (RMC) for community-driven reallocation.
  2. Future HSBR Funding: Any continuation of the Harmony Strategic Bitcoin Reserve (HSBR) beyond the recovery phase will require a validator snapshot vote, ensuring transparency and community approval.

Expected Benefits

  1. Accelerated Recovery: The 95% allocation to burning operations ensures uninterrupted restoration of depegged assets.
  2. Long-Term Stability: A Bitcoin-backed reserve provides financial security against market volatility.
  3. Enhanced Trust: Transparent on-chain operations and the “backed by Bitcoin” narrative improve ecosystem credibility.
  4. Community-Driven Governance: HIP and validator snapshot votes ensure full community participation.

Conclusion

The Harmony Strategic Bitcoin Reserve (HSBR) represents an innovative step toward Harmony’s recovery and long-term financial stability. By allocating 5% of monthly recovery funds to Bitcoin acquisitions while maintaining 95% for burning operations, Harmony ensures a balance between immediate recovery needs and long-term sustainability.

Once recovery is complete, emissions will revert to staking rewards by default, and any continuation of BSR funding will require a validator snapshot vote. Together, we can recover, rebuild, and grow Harmony.

3 Likes
34

What do you mean “[t]he community requested the SBR”? What is the request process? Who initiated it? Is there a threshold vote or quorum required?

The idea is so dumb that I can’t imagine anybody requested it in good faith. What possible reason is there to divert recovery funds to buy some other asset, which, at the least, incurs transaction costs, operational risk, and market risk? If you have surplus funds, you should just buy more depegged assets. That is not only the most efficient thing to do in terms of transaction costs, it also shortens the time until repegging. This just smacks of taking advantage of the runup in ONE to enrich those associated with the protocol rather than shortening the time to repegging.

2 Likes
35

Sonny_Masterson

Thank you for sharing your opinion. That’s why we hold a vote—to let the community decide. Recovery One Foundation will continue to facilitate community action.

You can cast your vote here: x.com

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36

I share the concerns that are being raised here. It’s understandable that people are questioning why we would want to create additional risk, especially in the current situation where we are experiencing increasing value of the native harmony token.

Like Sonny_Masterson, I’m also curious about the process behind the supposed ‘request’ for this SBR proposal. It would be helpful if the initiators provided more clarity about who requested this, how the request was made, and what criteria were used. Currently the community that requests the BSR seems to be consisting out of just a couple of people besides the twitter polls.

I also believe it’s important to be critical about the rationale behind the proposal. It’s essential that the goals are clearly defined, with measurable results and a clear strategy. So far, I find the justification to be rather vague, and I haven’t seen any concrete, SMART formulated goals yet. It would help if this were better elaborated in clearly formulated and structured sentences.

Furthermore, I feel that using Twitter polls to gauge community interest is not optimal. Platforms like Snapshot are specifically designed for this purpose and offer a more transparent and reliable way to assess community sentiment aligned with web3. It would be desirable to use such tools for these types of decisions.

2 Likes
37

TLDR: x.com

Thinking about great :up:side with the establishment of Harmony community Bitcoin Strategic Reserve :rocket:

:moneybag: Harmony likely sold 210M $ONE in less than a month without a blip to grow their treasury for a long term support

:chart_with_upwards_trend: We witnessed the recent surge (+300%) during the BSR movement (first ever BSR poll concluded on 11/20), whooping: 24hr volume of ~$300M, we never seen in the last 3 years.

:rocket: $ONE would bring 1000x volume and high liquidity and this is very likely accomplishable via BSR via welcoming developers, users, and institutional partners across the globe with $ONE <> Bitcoin adoption and implementation.

:100: Impact would be astronomical and this would not need a penny for marketing.

:earth_americas: BSR is now a global movement.

:moneybag: Allocation of 5% to buyout #BTC is going to give massive exposure of $ONE backed by Bitcoin

:brain: Staying hungry and foolish is the way and adopting BSR innovative way would lead $ONE to the moon

:full_moon: Price appreciation would drive accelerated recovery by #1000x

Looking at the datapoints:

Harmony rose :up: +300% since 11/20

Harmony Bitcoin Strategic Reserve first introduction via vote & talk forum which may have spiked users interests & drove millions of impressions, engagement, and ultimately attracted new users.

:ballot_box: 11/20: The first poll on 𝕏 concluded with 54.1% “YES” to allocate 50% to buyout Bitcoin :ballot_box: “Should We monthly allocate % to “Harmony Bitcoin Strategic Reserve” @ x.com

:white_check_mark: 11/20: A proposal to strengthen and positioning Harmony to the :top: following a noble path of MicroStrategy added to talk forum @ https://talk.harmony.one/t/strengthen-and-position-harmony-to-the-top-following-a-noble-path-of-microstrategy-metaplanet-toward-bitcoin-standard-and-accelerate-recovery

:white_check_mark: 12/7: Harmony Recovery ONE proposed the establishment of the Bitcoin Strategic Reserve (BSR) commencing in January 2025 to buy Bitcoin

2M+ Impressions: In last 3 months

IMG_6842
IMG_6842791×1280 61.7 KB

Price appreciation - Nov 21: During Initial BSR Vote and Proposal

IMG_6834
IMG_68341242×1396 141 KB

(Date: 11/24 to 12/7 ) Harmony ONE has been continuously mentioned on the most popular Binance social networking blog “Binance Square” as a result @ Latest Harmony News, Opinions, & Feed Today | Binance Square

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38

Bitcoin is much undervalued as per Michael Saylor - 21 Rules of Bitcoin (BTC Prague 2024 Keynote)

Saylor base price of $13M per BTC by 21 years is an eye opening.

By then Bitcoin dominance would likely be 80%+ & Alt(s) who are backed by Bitcoin has a strong chance to survive.

In order for base price to reach $13M , exit liquidity would be the Bitcoin.

Saylor has been saying this for a long time.

Few Miners are just realizing this and following his playbook.

Be the early than regret it.

References:
https://x.com/saylor/status/1869733918930518404?s=46
https://x.com/riotplatforms/status/1868658672835907769?s=46

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39

A huge plus on the update proposal:

Bitcoin acquisitions will be stored as Coinbase cbBTC would definitely introduce introduction of Harmony ONE to Coinbase and there will be a great opportunity to establish trust for potential listing in the future.

2 Likes
40

@mbarret3 you’ve done a great job listening to feedback and putting the proposal together. I’ll keep doing my little bit of building on Harmony if it goes through with the vote, but honestly I feel everyone has lost their minds and the strategy can literally be summed up as “Let’s dump ONE every month so the price goes up.”

Edit: Now that I think about it, every time I sell ONE the price goes up straight after so maybe it’s not such a bad idea…

1 Like