# Recovery One - Community governance for depegged tokens
**URL:** https://talk.harmony.one/t/recovery-one-community-governance-for-depegged-tokens/21104
**Category:** Announcements
**Created:** [August 10, 2022, 9:59pm UTC](https://talk.harmony.one/t/recovery-one-community-governance-for-depegged-tokens/21104 "2022-08-10T21:59:11Z")
**Posts on this page:** 1
**Showing post:** 30
### Author:  [@AryanXebat](https://talk.harmony.one/u/AryanXebat)
#### Post date: [August 11, 2022, 11:36pm UTC](https://talk.harmony.one/t/recovery-one-community-governance-for-depegged-tokens/21104/30 "2022-08-11T23:36:43Z")
Someone should run the numbers on my proposal besides myself.
> [@Reimbursement Proposal \[Horizon Incident\]](https://talk.harmony.one/t/reimbursement-proposal-horizon-incident/20665/121):
>
> Greetings, The proposal is a bad idea. Do not increase the supply. Here is an alternative idea : Transfer 10% to 30% into the treasury from the staking rewards. Meaning instead of the average 10% or so APR delegators of one will get somewhere to 9% to 6%. Decreasing the supply rate will increase the price in the long run Reimburse those who lost funds periodically while the price increases Effectively this is similar to how the Cardano treasury works for sustainability and funding. Just ha…
My proposal gained some traction & support on twitter :
>
>
> Harmony 💙 @harmonyprotocol
#Quick summary of Harmony tokenomics :
An annual total reward of 441M $One are issued from staking. The total circulating supply of $One increases until it’s matched by the network fees burn rate. Burning 441M $One in network fees is unlikely to happen anytime soon, so $One token is inflationary without a capped supply.
#The basics :
Decreasing the circulating supply by refilling the treasury with a certain percentage of the total annual staking rewards will logically increase the price, because rewards earned by validators & delegators will decrease. They would need to increase their holdings if they want to continue earning as much as they do currently. Less supply & more demand, results in price increase.
So I have 3 options :
Option 1) 20% of the total annual staking rewards to refill the treasury and APR per delegator drops from ~10%/9% to ~8%/7% :
- 20% of 441M $One is 88M $One (back into the treasury per year). At current price of $0,027/$One it would take about 40 years to reimburse hacked funds. It could take a year or 2, if $One reaches the price of $1 before being converted or sold.
Option 2) 30% of the total annual staking rewards to refill the treasury and APR per delegator drops from ~10%/9% to ~7%/6% :
- 30% of 441M $One is 132M $One. At current price, it would take about 28 years, but if held on & removed from circulating supply until $One reaches $1 price, the reimbursement could take less than a year.
Option 3) 40% of the total annual staking rewards to refill the treasury and APR per delegator drops from ~10%/9% to ~6%/5% :
- 40% of 441M $One is about 176M $One. At current price, it would take about 21 years, but if held on & removed from circulating supply until $One reaches $1 price, it could take a lot less than a year.
The most drastic option 3 (40%) seems to me like the most impactful one. Reducing inflation rate & circulating supply until the price of $One permits the reimbursement directly from the treasury. In my opinion not a single $One from the treasury for reimbursement should be made until the price per $One reaches $0,5 or $1. (The treasury acts like a long term hold to reduce circulating supply).
Regarding the network fees, they should either continue to burn or could also be used to fill up the treasury.
I hope I was understandable. Good Luck ✌
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