> Our response to R1 committee and final counter-proposal to R1 and Harmony teams
@Pioneer @hashmesan @mbarret3 @lij @stse @Jacksteroo
Why it is a big NO as it is?
We encourage holders of 1ASSETS (1USD, 1ETH, 1WBTC, 1USDT, 1DAI, 1FRAX, 1BUSD, bscBNB, bscBUSD, 1FXS, 1SUSHI, 1AAG, 1AAVE, 1WETH) to reject as is the unbalanced exchange offer as proposed by the R1 committee and not to bring their 1ASSETS for the following reasons:
1/ In addition to the proposal made by the Recovery One (R1) committee, the community has submitted 16 alternative proposals, of varying quality and feasibility, which have never been formally discussed and analyzed.
The R1 committee has no legitimacy with regard to the 1ASSETS holders and more broadly to the community to unilaterally impose a vote on its sole proposal.
The other proposals were rejected by which designated authority and for what reason? Nobody knows!
Why, then, were they submitted to the community? Unless you consider that the members of this committee were not elected and have no mandate to represent our interests … Except to defend the exclusive interests of Harmony and its managers, to the detriment of the investors of 1ASSETS!
2/ The offer submitted by R1 committee is unacceptable and does not reflect, by its mechanism, either a repeg of the 1ASSETS, nor a refund of the corresponding sums:
a) Unlike any public offer of exchange, the proposal made here does not even specify at any time the conditions of this exchange.
- What would be precisely for each of the 14 1ASSETS exchanged the number of rONE delivered?
- What exchange rate will be considered for the rONE for each asset, notably versus WBTC & ETH or any other 6 assets that are not stable coins?
- The proposal considers an exchange of 66% of the depegged 1assets (2,500M ONE – 66M$) and not 100% (3,763M One – 100M$) considering the price of $0.0264 per R1.
This initial rate of 66% of exchange of 1ASSETS for R1 does not correspond to any compensation equation. It is an arbitrary rate with no financial justification at all. - This rate of $0.0264 per rONE is totally unacceptable and, moreover, almost 30% above the average market price of ONE the past months, penalizing even more the holders of 1ASSETS in this unbalanced exchange.
b) Harmony and its managers consider a contribution of 100M ONE of the treasury to this operation (to the initial contract) that is to say a direct contribution of only 2.66% compared to the stolen 1assets! and 4% of the current main treasury wallet (Harmony Blockchain Explorer)
What a joke is it? This approach shows once again the contempt of Harmony’s management towards us. It shows a total denial of responsibility in this matter and seeks to avoid its obligations and does not provide any financial effort.
Also 5% retained for governance is of course unacceptable.
c) Staking conditions are not specified
- What are the conditions of locked staking, liquid staking, lending….?
- What are the terms and conditions for early withdrawal (prorated penalties, decreasing rate…)?
- Will the rONE staking rewards be immediately claimable in ONE (thus not locked)?
- There is also no indication of the period of time during which the rONEs will be destaking?
- What guarantees are offered in remuneration for the immobilization of our investment? No details to this day allow to guarantee the stability of the initial capital (stable coins for example) and the interest rate!
- The 30-day exit conditions are not specified and the 22% rate is meaningless! It simply allows Harmony and its managers to pay only a fraction of their debt to us! We cannot accept this.
What you should consider for a YES?
Our group therefore asks R1 committee to deeply reconsider its offer and to integrate our above questions and our demands which are the following:
- 1% MAXIMUM retained for governance
- rONE should be pegged at a minimum 80% (parity) or current market parity (whichever is greater).
- Using a ONE token price between $0.010 and $0.015, as it reflects the real price post operation.
- rONE can redeem 2.4:1 ONE (31.25% parity) within 30 days of mint capped to 5M ONE per wallet (this last point to be discussed).
- Full value in $ONE at the end of 2 YEARS MAXIMUM. 3 years to get every dollar back for each stablecoin or blue chip is far too long! We’re in crypto world!
- APR staking must be guaranteed at least 20% per year.
Thank you for reading 