Recovery One - Community governance for depegged tokens

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I just removed liquidity from frontend and it works.

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I bridged my de-pegged assets out of Harmony at a massive loss after the initial proposal. Is there some way I can still take part in the governance? and if not, do I need to move back my assets to be a part of the reimbursement?

I think many swallowed the loose and sold their unpeged stables to have at least a bit out of it. With this plan to “stake” unpeged stables to get another token for voting it’s not fair at all for those who made a loose with unpeg. Through graph node and the snapshot infront of the hack you could literally give those people a token and let vote and reimburse. But in general if this plan also affect the Tokenomics in future then ONE holder are not allowed to vote at all?
Also I’m wondering if there is already a plan to burn the unpeged stables? By bridging out via synapse the supply will also decreased or is it just a locking?

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Sorry for my somewhat inaccurate description, it does work to quit. My trapped was a metaphor, as the user’s money equates to a significant shrinkage and then being trapped. I’m sorry for the extra work, but this is something that does help in researching options.

@lij what is the full makeup of the Treasury? You mentioned that it can fully repeg the bridge AND have 3 years of runway. If so, why not repeg the bridge using the Treasury 100% AND have your 3 years of runway…

Mind blowing.

I think the implication is that supporting this or any other recovery plan is exactly that. Using the treasury over a period of time to fund repegging and other efforts related to the issues surrounding that. It’s just a question of over what period of time and making proper use of the funds to do so.

But it’s certainly not going to be possible or wise to for them to try to sell $100m of ONE at far below today’s prices OTC to some disinterested third party in the name of restoring the peg. It would likely either kill the project and destroy any runway at all, assuming there was even a buyer who would make such a purchase. Continued growth and development should yield much more than selling the whole treasury at once at the likely bottom.

They can sell almost 50% less ONE now to get $100m with the recent pump to 3.1cents. Timing is everything.

However, the BTC and ETH is worth much more now than at the time of the hack…time is ticking:

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If someone had made an offer to provide that amount of money with reasonable terms that respected the longer term viability and growth of the project I don’t think this thread would exist. Keep in mind this isn’t anything like a seed stage investment at this point.

The best type of offer like that I would imagine would be available would be one from a a firm who would be strictly looking for a deal where they could immediately guarantee large profits at the team and community’s expense by extracting the most amount of unlocked ONE up front, with the shortest possible vesting period. Immediately extracting all possible value out of the deal by some combination of selling and shorting/hedging the excess on futures. With no regard or care to what happens to Harmony, just taking advantage of an unfortunate situation and locking in a profitable delta neutral trade. This is often, not necessarily always, but often the bread and butter of firms like Alameda and Jump. And firms like that aren’t even really ‘the bad guys’ as much as they’re just doing what they do. Maybe it is even worse than this with what is available.

Now think about if you could take the same amount of ONE, but extract more value from it over time and continue to develop without sacrificing the future while eventually achieving a similar result. It seems like doing that is better than being taken advantage of.

I do agree with you through about how time is ticking with the value of the assets. It’s a bit easy to say now in retrospect but, Harmony could have also taken a page out of Alameda’s play book and hedged some of their accidental short exposure to BTC and ETH by longing at least some percentage of it. It is offset somewhat by ONE’s correlation, but it’s still one of the bigger potential issues here I think.

Otherwise I think doing it this way over time is a good idea assuming the community can sort things out.

Put the BAYC apes to work .

Contact frankerlin or some big bayc hodlers, works with them to market the apes .

Create a narrative that the buyers is saving the chain while the team (seller) is putting repeating as a piority and be accountable

Getting funds to repeg and showing the industry $ONE accountability and take the chance to
Market and be on all Crypto news , attracting new dev, dapps and investor s

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With many swapping out and taking loss ? Are we able to snapshot and repeg/reimburse those who have stayed throughout only

Allowing those who protected themselves to take the loss and prevent those opportunist to capitalize on the repeg?

We can vote it through and if that happen I think it would be substantially be less than 100M .

Recovery One (Twitter Space) Q&A Response

Note: This is a live document and is open to edits in time.

Community Questions and Recovery One’s Position

Why the Recovery One Foundation?

In response to the bridge incident, a group of community members formed to discuss creative solutions. During this process of discovery, the discussion expanded to include community members, validators, ecosystem developers, ecosystem partners, outside counsel, and financial industry advisors. This process of discovery created practical solutions that resonated with the core values of the Harmony ecosystem. Recovery One is the community in action restoring integrity to the ecosystem.

What is the Recovery One mandate?

Mission

The recovery of depegged assets and the strengthening of the Harmony ecosystem through a community-governed action.

Purpose

The structure promotes collaborative action. Committee members 1) create proposals with community input and facilitate discussions and initiate the voting process with its members 2) provide grants to take on problems and build solutions.

Why do we need governance?

Following the bridge incident, certain assets lacked an effective voice and solution to restore integrity. Recovery One’s primary focus at the outset is to represent the depegged asset holders and provide solutions to restore the larger defi ecosystem.

It sounds like Harmony is pushing off the responsibility to the community?

After the initial proposal, there were tense debates and many voices and directions. Our group came together with Harmony’s help. There were internal conversations with Harmony to discuss how we go about implementing proposals. The short answer is we’re doing it together. The final decision in forming R1 was in consideration of how we give the community the largest voice, not just now, but ongoing if the proposed plan expands for a long period. Depending on the proposals that get implemented, this gives us the broadest range of compliance.

Do you have a current plan (or will the plan be made by the community)?

The Recovery One team has facilitated and evolved several solutions and has established core plans to bring to the community. We seek additional collaboration and feedback before presenting a final plan.

How much longer do we have to wait? (Why is it taking so long?)

The Recovery One team is stepping up to provide solutions to the depegged asset holders. We have been seeking input to formulate the most practical and comprehensive solution that is multifaceted and dynamic.

How soon can a plan be implemented?

First, we need to launch the staking/unstake depegged assets so we can have a proper governance system that represents the depegged token holders. From there, we will launch the first proposals to resolve the depegged assets via the process we outlined in our governance formation. We’re moving pretty fast through this process, and discussing proposals internally as we eluded earlier in parallel with the setting up of the governance.

Why not open the vote to the entire community by utilizing the ONE token for voting?

Recovery One will provide solutions for the depegged asset holders. The bridged assets and defi solution will be presented to the ONE community.

What about non-R1 holders?

All ideas, feedback, and suggestions are welcome.

Why did this take so long?

Harmony prioritized investigating & securing the system for the first month, then turned their focus on reimbursing or fixing the depegged tokens. Recovery One Foundation gained support from the Harmony, and community quite quickly, and we got this setup in one and a ½ weeks from the beginning of the conversation.

What happens to the depegged asset?

When you stake depegged assets, it gives you voting power. You can unstake to get your assets back and exit the governance.

Will depegged assets increase in value because of voting power?

The purpose of governance is to set in place a voting process that represents the impacted users, to produce future proposals for recovering depegged assets, and the management that process.

Who will audit the contract?

Harmony, our Defi partners, and potential external auditors.

Is this another DAO?

No.

Is there another solution?

The most important role of Recovery One Foundation is to be the sponsor of proposals from the community, write them in a well-formed language, validate the data & assumptions and place them for public discussion. A proposal must be feasible, understandable, and have some traction in the community. We are shepherds of the process, and help vet them before they are put to the larger community vote.

How can we present a new solution?

Recovery One will be receiving proposals and providing more information regarding where to submit proposals on the upcoming AMA, 8/16/2022.

You can also reach out to one of our committee members to discuss your idea. If a solution aligns with our mission and purpose, we invite you to share your ideas with that proposal group, OR it can start as a new proposal with a committee member as your sponsor, provided that it meets feasibility, and your time to take ownership of this idea as it further gets vetted, and discussed.

Recovery One Contact:

@HarmonyVillains-Pioneer/ Logan

@cryptoQuoc-Quoc

@matthewtbarrett

Is this just another inflationary solution?

The scope of Recovery One Foundation is a governance structure. The proposals themselves are different.

Can the Defi ecosystem return to Harmony?

The Recovery One Foundation will facilitate proposals that the community wants to see addressed.

Who will program (code) the solution?

Its non custodial contract. There are no private keys to access it (no owner, no dev, no upgradability). No one receives those tokens. They’re locked/unlocked by your rONE token. It works like LP tokens, you can stake and unstake anytime. Depending on how we proceed with the actual plans to reimburse/recover the depeg, we could ask people to unstake and put in another contract to receive the reimbursement or exchange rONE for reimbursement.

We’ll ask Harmony, Tranquil, and well-known and reputable auditors to audit the contract.

What type of longer-term action can the Recovery One Foundation have?

By providing value to the ecosystem we look to have a long-term seat at the table when it comes to Harmony’s roadmap and community engagement.

What ensures that the Harmony core team will consider proposals made by R1?

The Recovery One team has been in active dialogue with the Harmony Core team. We will use that framework as the vehicle to collaborate and solve real problems. We believe integrity is the foundation from which we work together.

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If you only reimburse those who have held since before the bridge exploit, then there won’t be a repeg. All those other unpegged assets would not be addressed

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It is not a great start if this is the detail you go into with your answers.

There is a proposed governance token for members.
Votes are made from members within this organisation (if i understand you correctly)
I have heard talk of a 5 of 9 Multi-sig and a Treasury.
This sounds like it has similar things to a dao (on Harmony)
You are not a Labour Union as i understand a Union to be.

There has been no voting of the rulers of this organisation, which is an argument in favour that it is not a dao. I do not know the members of this organisation and i certainly am not even aware of you or know much at all about any of the members yet you wish to represent me.

I really don’t mean any offence here but, you must understand that giving a one word answer is not good at all. If it is not a dao, what is this organisation? Can you clarify?

If this Organisation is to represent people affected by this Hack then i feel you should not be giving one word answers to answer a question. If you do not know what is wrong with communicating in this way then I, at this point, would not wish to be represented by you or your Organisation, whatever type of organisation you claim you are.

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I think it’s just a political distinction here intended to distance the group from the poor results and lack of value produced by the DAO initiative on Harmony thus far. But also one difference is probably the intention to focus on funding flowing directly into non-custodial contracts to achieve goals and minimize any risks from the human element.

The philosophical discussion of what defines a DAO in the broader context is another topic, and one could probably make the argument that whatever ends up emerging from this is a DAO in some form. But as you mention Harmony culture does have some specific definitions and conventions. And for PR reasons they’ll probably be avoided just because they seem to trigger suspicion and fear in a significant portion of the community(understandably so to be honest!).

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Hi there! I have been trying to reach out many time, and trying again. Maybe somebody will hear me. Do you have any exceptions for emergencies that members of community have? I am in a situation where I an dealing with a life changing event and need my stablecoins to survive. I can’t wait for 3 years, or even one year - I need it now. I wasn’t invested in defi at all, I simply held stablecoins in my metamask in a secure way, believing that my money was safe with Harmony and I could convert to $$ any time that I need it. I had no idea that native stablecoins are different from the same coins when bridged :frowning: In any case, I kept money in harmony because I loved Harmony and was planning to invest in Harmony projects. But life happened the way that I do need my money now, the whole amount. I am asking you to share this message with the team please. Can people who reach out to you and have an emergency and need their money to survive have a way to get their money back? Thank you

Here is my wallet.

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Hi there! I have been trying to reach out many time, and trying again. Maybe somebody will hear me. Do you have any exceptions for emergencies that members of community have? I am in a situation where I an dealing with a life changing event and need my stablecoins to survive. I can’t wait for 3 years, or even one year - I need it now. I wasn’t invested in defi at all, I simply held stablecoins in my metamask in a secure way, believing that my money was safe with Harmony and I could convert to $$ any time that I need it. I had no idea that native stablecoins are different from the same coins when bridged :frowning: In any case, I kept money in harmony because I loved Harmony and was planning to invest in Harmony projects. But life happened the way that I do need my money now, the whole amount. I am asking you to share this message with the team please. Can people who reach out to you and have an emergency and need their money to survive have a way to get their money back? Thank you

Here is my wallet.

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Nope

I am sure it’s possible to be done through snapshot .

Luna 2.0 did not remunerate everyone who bought the dip but they go through a percentage weight to how to remunerate after the snapshots of time of event .

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As far as I’m concerned it’s a DAO. “If it looks like a duck…”. I have no issue with it operating like a DAO, though.

But R1 is refusing to call it that because of how badly Harmony f’ed up their DAO program over the last year. The community - wrongly - associates all DAOs with scams and Harmony’s own failures.

Instead of lying and evading questions (the DAO question isn’t the only non-answer I’ve seen), just be honest and straight forward. Don’t dance around questions and force community members to repeatedly ask you to clarify vague answers. People generally tend to respect and appreciate that. I suspect you’ll gain more support that way.

“Nope” what?

Idk enough about what LUNA did to know what you’re describing. But it sounds like you are in favor of reimbursement and not repeg?

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