Recovery ONE: Burn Phase V2

Ecosystem Resources
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To be honest, I think trick (although his tone certainly leaves something to be desired and internet warriors think such a way of communicating is the way forward if any conversation moves towards the wrong side…) does have some points:

  1. The recovery1 team gets paid a decent salary for simply informing people and reloading smart contracts (excluding 1 time proper dev skills aside for creating the frontend+SCs), looking at your track record I would assume that the recovery1 team could also communicate a bit better (timeline of funds… exact times going live new rounds.) Right now everything is going very ad-hoc and disorganized. While things have improved (thank you for splitting up the topics on this forum and creating the AAVE thing) it baffles me how hard this seems to be.

2a. There is still no clarity on funds and modus operandi of r1… Since the R1 team is smaller… Do you also receive more salary? Will there be any teamsheet/page to create this overview

2b. Can you explain to me why the recovery funds were a paltry 19K at the start of the last round as opposed to the 40K (minus your fees)? If (as mentioned earlier) you guys split the rounds into 2… At least communicate about it decently, transparently and clearly. Or Padumps create a neat little overview page for it. The excuse; look it up in the explorer is (imho) another showcase of clear lack of transparency and willingness to support those who are less technical savvy.

  1. The amount of fixes that have to be done afterward is a proper showcase of how little actual thought that has been put into this recovery proposal/method. Modulo/Tranquil is more efficient than r1 so why put funds in a subpar-performing department of recovery? Just to siphon even more dollars off from the meager recovery effort?

  2. We STILL do not have ANY explanation about the quick trades that have occurred on r1 prior to any announcement on social media (so far for radical transparency and fairness right?). Those wallets are heavily linked to the remaining (2. not counting the last soul that joined the team) team members.

4b. Any Post-Mortem would be in place. However, this is being handled with the same attitude that some h1 leadership has shown the community time and time again. Shrug it away and brush over it with different/new/uncorrelated information and try to forget about it. Let’s try to not do the same :wink:

Last of all, @mbarret3 , I wish you and your family nothing but the best on the personal side (take care and all the best for your kid) and I DO appreciate what you’re doing for the “community” with the repeg efforts. Just hope we can improve on above stated points trying to create a less toxic environment for those still involved here (not many left…). The h1 discord is a shame with negative folks where there is 0 room for discussion and disagreement, let us try to keep things positive-minded here!

If you would want to have some simple information page implemented. let me know (I would do it for free using Notion, Simple widget implementation).

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Thank you for your kind words; they mean a lot to us. We are all genuinely here to help, and we were attracted to this blockchain because of the positive energy that was part of the ethos of Harmony. We welcome feedback, but we kindly ask you to deliver it in a constructive manner. Remember that we are human beings, and the Recovery One team is doing its best to rebuild and strengthen what we have all lost.

Now, let’s address your questions. It’s always important to provide a comprehensive understanding of what an organization does because, over time, people tend to perceive things based on surface-level comments. This is especially true in Web3, where everything can be MEMEd and reduced to short viral tweets. However, the reality is that everything has nuances and complexities that deserve proper consideration.

1.) The Recovery One team takes a service fee from each round to support various initiatives. These include funding contract development, improving the user interface, communicating with the Harmony community, collaborating with AAVE and Curve, supporting ecosystem initiatives, promoting burning validators, communicating with remaining harmony artist, communicating with Tranquil and Modulo, assisting Tranquil in the new stONE validator section, providing ongoing updates and summaries, and facilitating AAVE’s inclusion into the recovery. These are just a few, but all of these efforts align with our initial focus on the recovery of depegged assets and the strengthening of the Harmony ecosystem through community action. Since the start we have followed a cadence regarding communication. We provide updates at the beginning of the round, mid-round through the R1 partners (past and present), updates at the end of the round, and summaries of the rounds for all recovery partners. We stay away from price talk because our words could influence price action.

2.) We take a service fee of $1,000 for each round to fund the initiatives mentioned above.

2a.) At the start of Round 8, $20k in USDC was added to the Recovery Exchange. This follows the framework that R1 has been following for a few months now. We break up the round into two parts. However, with the new Recovery.Exchange mechanism in place, we believe that we can load the entire amount at the beginning of the rounds. Regarding communicating the funding of each sub-round (Part 2), we do so through Talk forum and Twitter through the R1 members and R1 Twitter page.

3.) The Recovery.Exchange has undergone many changes, similar to the other burn partners. We chose to create a dynamic burn mechanism because we needed to stay agile given the variable nature of markets. Recovery One is different from Modulo and Tranquil as we actively seek feedback and communication with the community, and we work to address other problems caused by the Horizon Bridge attack. We not only burn tokens but also assist with a multitude of initiatives.

4.) In a previous post, I mentioned that the Recovery team conducted tests on the new Recovery.Exchange before funding and conducted another test after funding. There were two transactions. Here is the post that describes this fact: Recovery ONE: Burn Phase - #215 by mbarret3

4a.) Please refer to the above post I made to refute the misinformation.

Once again, thank you for your constructive criticism and kind words. The Recovery One team cares about the recovery, and we are also three individuals with families, kids, and full-time jobs where we manage people. Apart from our work here, we are Harmony community members, validators, and former developers. We are here to help, but we would appreciate more assistance. Instead of casting stones, please lend a hand. The Harmony community DAO is doing good work, and other initiatives are also taking action. Consistent negative attacks and approaches to this recovery or anything related to Harmony are not helpful and only breed more negativity.

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24

I am sorry for your son.

Since you were indisposed you should’ve allowed someone else to provide the necessary updates that are required of the R1 job you actively lobbied for and for which you are being compensated by Harmony - updates via official R1 accounts! I had messaged you both on here and on Twitter multiple times this round and had not gotten a single response. No acknowledgment whatsoever.

Communication issues and poor execution have been the norm for R1. This isn’t a one-off occurrence. I think we all remember how the community’s anger towards you/R1 came to a head last month!

• You did NOT post the changes to round 8 on Twitter.
If you’re going to say “there are changes” then you need to say what those changes are. This is basic stuff. How hard is it to copy/paste or screenshot that into into Twitter? Because if that’s too difficult or time consuming for you to do, why do you expect people to click on links in a follow up tweet (not even the original/primary R1 tweet). You must also know by now that there are plenty of people on Twitter who aren’t frequent Talk visitors.

• You did NOT post the expansion of eligible wallets 24 hours after round 8 launch on Twitter. People expect news and updates from the official R1 account.
Hound tweeted from his personal account, because you have sole access to the R1 Twitter account. Surely you must know that not everybody who follows R1 also follows Hound, so there were almost certainly people who did not see the tweet. Who contacted Hound about the “24 hour update” after getting zero response from you? I did.

• You did NOT make any comment or respond to community inquiries regarding the R1 exchange rate even when the market price on DEX exceeded the R1’s exchange rate.

• You did NOT respond to a direct question on Twitter about why 1FRAX was not included on the exchange.
You still haven’t answered that. 1FRAX was the sixth largest asset affected in terms of $USD.

• In the same vain as 1FRAX, there were 14 tokens reported by Harmony as affected by the bridge hack, but only 7 are available on the R1 exchange. Why is that? (I know a significant amount of 1AAG was saved/retrieved.)

• I contacted Hound about there being two BTC options on the R1 exchange even though there was only one type of BTC that was affected (this has since been corrected).

• I noticed that the R1 exchange had an error with 1BUSD this round and contacted Hound.

You see, Hound actually responds when people reach out to him. The community knows and respects him. Thank you, @HoundOne_Validator.

The community has a right to expect more from you and R1. This is month/round 8. It should be nearly plug-and-play by now, but we continually have issues that need to be addressed.

I do not care if you don’t like my tone. I don’t like how you conduct R1 affairs. I find R1’s constant issues to be problematic. I suppose that makes us even!

Please stop your “woe is me” act. If you and Quoc had more respect for the community this could’ve all been avoided. You can’t keep having snafus and then get mad at the community for wanting you to stop having snafus. That’s illogical!

I commend your attempt at trying to make this about how I’m “mean” to you instead of about your questionable R1 competency. :clap:

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26

Trick, Thank you.

——

To your points now:

You did NOT post the changes to Round 8 on Twitter.
Yes we did and here it is: https://twitter.com/recoveryonefdn/status/1656408100406951936?s=20

You did NOT post the expansion of eligible wallets 24 hours after Round 8 launch on Twitter.
Here it is again: https://twitter.com/Houndvalidator/status/1658982180964663296

Recovery One has always (since Round 1) communicated through the community members’ personal Twitter accounts. I spoke with Hound and asked him to post on his personal during my hectic week. Going forward we will post future updates on our R1 Twitter account. Each of us has access to post on the Recovery One Twitter account.

You did NOT make any comment or respond to community inquiries regarding the R1 exchange rate, even when the market price on DEX exceeded the R1’s exchange rate.
We haven’t commented on price in the past because don’t want to engage in price speculation. We will release our rules for setting the R1 exchange rate.

You did NOT respond to a direct question on Twitter about why 1FRAX was not included on the exchange.
Frax has had zero exchanges since Round 1. We can add it if people need to swap.

——

We appreciate your feedback and I appreciate your change of tone. :blush:

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I agree. How can we help? R1 started with the community coming together. Let’s continue to come together and help each other.

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28

Here to once again point out that R1 is having issues.

  1. The third part of Round 8 has started. And again R1 has not communicated updates to the community.
  2. R1 has not updated the R1 exchange to show that the “max refund per wallet” is now $1200. It’s still showing $300 (a lingering problem from part 2, as it was never even updated to $600).
  3. The increase to $1200 means the newly available refund amount per wallet for part 3 should be $600, but the exchange is still only allowing $300.

@mbarret3 @hashmesan @HoundOne_Validator

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Round 8 Summary

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R1’s Rules for Recovery.Exchange pricing:

Two-Part Pricing: Our pricing process consists of two parts: Part 1 Pricing and Part 2 Pricing. For both parts, we set the exchange rate with a .005 premium on the prevailing market rate.

Part 1 Pricing: The exchange rate for Part 1 Pricing is set at a .005 premium above the prevailing market rate at the time when the Recovery.Exchange contract is funded. This ensures an immediate reflection of the market conditions, with the added premium for Recovery Exchanges.

Part 2 Pricing: For Part 2 Pricing, we set the exchange rate at a .005 premium above the prevailing market rate when the second half of the funds are sent to the Recovery.Exchange contract. This adjustment takes into account potential market changes during the funding period, keeping the price both competitive and fair.

Consistency in Premium: Regardless of whether it’s Part 1 or Part 2 Pricing, the .005 premium applied above the market price will remain consistent. This rule ensures predictability and uniformity in our pricing strategy.

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31

Bro like wtf from 10c to this shit did u forget ur dute of compensate hack victims

32

I believe it is important to remember that Recovery One’s initial plan was not approved, and Harmony decided to proceed with the burn plan. The burn plan involved using burn partners to efficiently remove assets from the ecosystem.

It is widely known that the Horizon Bridge Assets do not hold any value, which is why their prices continue to decline. Additionally, I recall that Recovery One’s initial plan aimed to incentivize early swapping, followed by a reduced swap rate and a subsequent increase in the exchange rate in later rounds. It is fascinating to observe this natural progression. If this burn plan aligns with the predictions outlined in Recovery One’s community plan, it is likely that the exchange rate will increase in later rounds as burning depegged assets becomes more challenging.

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Round9 ended already? Modulo is having issues to burn as well?

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Why does Modulo start to implement something that doesn’t make sense ? Why include only wallets that used it before and not even wallet affected by the bridge hack ?

We already have R1 which is a protocol for the community where there is a whitelist. The mechanism of Modulo is more to be able to have a even supply of peg-USDC at a fair price. Reducing the amount of wallet and introducing a whitelist makes the recovery and burn less efficient cause less people are able to arbitrage and get the fair price. Which result in burn with a higher price.

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36

agreed I think they changed it back. It was a bad modification to their burn mechanism.

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No it’s just that their new mechanism is a whitelist for 48h and then they open it to all if I understood correctly.

But eve a whitelist just for 48h doesn’t make sense in my opinion and is against their burn mechanism.

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I completely agree with you. It appears that Modulo is not performing as efficiently as it should. We all know that Modulo allows for the use of bots and smart contracts. However, there is one thing worth noting: there is a minor setback of a 48-hour pause that might be hindering its full efficiency potential. According to the latest statistics, Modulo has hosted around 212 smart contract wallets or bots. Quite a significant number.

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Hi to all.
I have a pre-hack wallet and I have a problem.
I have some depegged 1assets in tranquil finance.
What can I do?

  1. Is it convenient to unlock assets?
  2. Is it better to burn them using R1 or Modulo?
  3. If not, is it better to wait years and wait for a better rate?

Thank you in advance <3

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No one can know in advance how the peg will fluctuate. You can choose either R1 or Modulo but they are mostly the same and at the end will follow the open market fluctuations.

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We all hope the recovery accelerates. I think Harmony needs to supplement the efforts of our burn partners soon.

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Yes. It accelerates. Every day faster. Almost there.

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