Very good points. This is way too long and they don’t give a reasonable way out for depegged holders. 50% within 30 days seems the minimum in my view.
I also find it weird that they are only willing to inject 2.5 million at the start when there is 55 million in the treasury.
2 Likes
After careful consideration, your proposal is quite an insult to the community’s collective intelligence. It is neither a repeg nor a DeFi solution (unbacked loans).
Even worse it doesn’t reflect the community and 1asset holder’s main demand.
This is so unprofessional!
1/ You propose 66% parity … why 66% (2/3)?
Where did you get this? And why not 100%?
2/ You propose 3 years locked staking! … Why 3 years?
What about 10 or 20 years so our grandchildren would be able to enjoy some vacations!
3/ You propose to cap the exit at 22% (even with a cap !!!) Why this? Who decides this number?
Harmony was supposed to use a large part of its treasury! Are you kidding or what?
4/ You propose 15% APR for locked and staked rONE ! Why 15% and not more.
Who decides this and what will be the guarantees?
Let me be truly clear here.
Recovering full value of depeg assets means 100% and NOW, certainly not over a 3 years period and users/holders should be free to decide if they want to stay or to leave the Harmony blockchain.
Your proposal is the same as Stephen TSE 1st proposal of 50% reimbursement in ONE token over a 3 years period.
Are you S. TSE puppets or are you leading our community towards a solution?
With other investors we hold more than a million $ of 1assets and we will never accept such a proposal.
Work harder on your proposal other why Harmony is a dead blockchain! How do you imagine even with the most creative brain that people will bridge assets to Harmony from other blockchains if they know they cannot trust it and be sure the funds are safe?
We invite as many people as possible to join us in order to get our money back with all the necessary means.
4 Likes
MaewouOne and Lopis, Thank you for your questions. Recovery One’s mission is the recovery of depegged assets and the strengthening of the Harmony ecosystem through a community-governed action.
Depegged Assets
In order to repeg we need to give utility and backing to the depegged assets. (Without utility or backing current depegged assets have no value. Why their value was drained at the origin). That is what rONE does. I’ll take you through depegged assets first to share the general mechanics of how rONE is backed. The utility value of rONE comes from the governance structure and the multifaceted rONE use cases.
Example 1:
- 1 USDC (current market value on the chain is .1377)
- You will be able to take 1 USDC and mint at a minimum of (66% parity) rONE. So, if the market is .20cent for USDC. You mint .66 rONE.
- .66 rONE with 15% interest over 3 years the outcome equals 1. (ONE is currently priced at .0224, which means .66 rONE would be back by 29.46 ONE. After 3 years rONE would be able to redeem 44.80 ONE. If you take the current market value of ONE at .0224 * 44.80 = 1.00352)
Why did we choose the specific percentages?
22%- It’s an early exit option above the market price.
66% - This is the percentage of parity that when combined with 15% interest over 3 years the amount comes to full.
That’s the pairity mechanics.
While rONE soaks up depegged assets (rONE mint is open for 1 year) on the chain, Defi protocols have expressed their intentions to create v2 or v3 and want to restart Defi on Harmony using rONE, ONE, USDX, and new bridged assets in their Defi services. The new bridged assets will have an accurate peg while old bridged assets (which would be newly minted rONE ) have the ability to gain more value given rONE’s multifaceted use cases.
rONE Use Cases
- Traded/speculated on (no staking emission).
- Collateralized (no staking emission).
- Staking.
- Potential liquid staking similar to stONE.
- Liquidity pools (no staking emission).
- Voting (with staking emission).
- Delegated voting.
- Other Defi innovations may come.
rONE multifaceted use case is the vehicle that strengthens the Harmony ecosystem and allows for defi innovations to be built. (example - tranquil’s stONE product).
Please keep asking great questions and we will make the recovery of depegged assets and the strengthening of the Harmony ecosystem proposal the best it can be. Thanks.
2 Likes
i’d like to propose an amendment to the proposal
- Take a snapshot of current wallets on chain 1 hr before hack (so any new wallets created after snapshot can not participate in repeg/reimbursement)
- Take a note of current 1assets sitting in wallets as of proposal approval vs in defi contracts
- Work with defi protocols to liquidate users that overborrowed and reimburse users with deposited ONE (unlocking it)
- all affected snapshotted wallets holding 1assets can instantly convert to true value within 30 days up to x amount (ex $50k)
- after 30 days, any unconverted 1assets can be able to convert to rONE to stake per Proposal
this helps solve some of the defi issues with overborrowed ONE and helps a bunch of the little guys
1 Like
The problem is in your example at the end.
- 1 USDC (current market value on the chain is .1377)
- You will be able to take 1 USDC and mint at a minimum of (66% parity) rONE. So, if the market is .20cent for USDC. You mint .66 rONE.
- .66 rONE with 15% interest over 3 years the outcome equals 1. (ONE is currently priced at .0224, which means .66 rONE would be back by 29.46 ONE. After 3 years rONE would be able to redeem 44.80 ONE. If you take the current market value of ONE at .0224 * 44.80 = 1.00352)
In your example you basically swap a stable coin for a volatile coin over the course of 3 years and expect that value to be at least the same after three years (extremely unlikely given the reputation of harmony at the moment and yearly inflation). Then to top it off after those three years you unleash huge selling pressure.
There is no way to predict how much your initial 1 USDC will be worth in 3 years at the moment that you are able to sell. It could even be less than the current worth of .1377 
1 Like
You are also afforded the opportunity for an early exit throughout the progression of the 3-year proposed timeframe. If ONE has gone up in value an early exit could lead to 100% recovery. You’re right, it is based on market conditions and faith in the ONE ecosystem’s future. If users have lost faith, we offer better-than-market price at the onset (22% parity) as an early exit strategy, as well as other mechanics to drive the rapid deflation of unbacked assets from market (which has the effect of lowering supply and driving up the price over time).
There is no solution that we can offer that buys down 50% of debt outright. However, early buyback will occur, thereby significantly reducing the debt ceiling.
1 Like
Is this how the Core Team (Li?) treats people who do not agree with your proposals?
lij op
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I have a question regarding the rONE proposal: would you be so kind as to describe how the proposal would compensate wallets that attempted to cross the bridge after the hack happened but before the hack was announced (and the bridge closed), since their 1tokens are still “stuck” on the bridge and thus they can’t be deposited in the rONE smart contract? Would the blockchain be scanned for 1tokens that were burned by the bridge after the hack started but were not redeemed by the bridge? Would rONE be airdropped to those wallets using the rONE smart contract formula?
Thank you 
ABTRACTION
Whatever strategy we use, we must sacrifice something between the harmony team or the holder. There are 3 entities we can use to pay. Harmony team that will pay with their money/treasury. or holders with donations/inflation with whatever mechanism and method that we will use. and Time as a reductor of the impact of responsibilities, so we pay with our time.
Therefore before we strategize recovery. we have to discuss first who should be responsible. among the three. we are harmony right? harmony with its characteristic balance. Because of that I think the fairest thing is that we should be responsible together. The 50M that harmony has to pay and the other 50M that the holder has to pay by whatever method is the best instantly or using a period of time to reduce the bad impact.
MY CHOICE
I prefer to use time + donation variable. Based on community proposal number 11. Use tx fee to repeg depegged assets and use $50M from treasury to buy back everytime the price drops to the point before it drops. this will make the price constant and always going up. then because people know that we use tx fees for repeg and with backing so the price will never go down until the $50M backed treasury runs out, they will start buying back again because they will get a discount 1usdc for example
then for people affected by this depegged asset. we create a new token representing the original token in harmony ecosystem and these tokens can be used in every Daps in harmony. for example “r1USDC, rONE, rJEWEL, rXYA”. These tokens have a price that has been adjusted to the depegged asset as if the price has returned to normal and the price of the tokens reflects the original token. The affected people can swap their assets to this recovery tokens to use them in Daps or just for investment on other token while waiting for repeg complete. and they can only swap this recovery token with depegged assets again or with a supply and demand exchange that we will make, but the order will only have 1 price that represents the current token price. Which people can swap their tokens for recovery tokens or vice versa using this exchange… The the owner of the recovery token will have the advantage in Daps. for example maybe when minting for a new hero in a Daps the r version token will get different cover nft from standard one or whatever utilities of it. this will make people more interested in helping victims as a way out to sell their assets. then the proceeds from the sale of this nft spedial edition can be burned or the Deps developer will sell it later when 1USDC is successful in repeg/through supply-demand mechanisms because they also need to pay employees. so the point is every Daps in harmony protocol will try to add spesial utilities to someone that using recovery token.
…
This strategy using variable Time + Good Person(Project who burning recovery token) + Greed Person(Someone who buy back depegged asset to get the discount),.And with strategy Use txn fee + Minting + Treasury
Sorry for my bad english I hope u guys still understand it
1 Like
Only fresh fiat is able to recover the 1assets. Options, other than this, are “buying hope” plan. Thank you.
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HI guys can someone tell me how much money is on the treasury, and the plan is like the plan of harmony, dude …
2 Likes
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The Horizon. it was negligent and reckless as we all know. there are several bridges, but the “hardest hacker in history” only occurred in Nativa da Harmony… Let’s not cry over spilled milk. But I’m trying to understand this whole circus, when I just create the RE-PEG schedule and that’s it! And yet why this bomb falls on investors in the form that follows, in a little while they will ask the community to wipe Mr. @STSE. However, let’s say that BLOCKCHAIN ONE is the “HOUSE of @stse, the HORIZON = SECURITY exclusive to the garage of this House. the CARS = ASSETS (tokens) in custody. Then we come to your “HOUSE” Mr. @stse, we leave the " CARS” in the garage with your SECURITY ensuring their guard… and that’s it we’re inside… and when building your BLOCKCHAIN, with marketing, projects and everything… your security “slept on point” and leaves the keys hanging for the thief comes in, takes the keys to the “garage” and steals almost everything ( ETH, then BTC, USDC ). part of what we investors put in your house, the one that should be “safe”… after it’s over. your bouncer wakes up and smartly decides to lock us all in your house (blockchain) with nothing… “on foot” zero .
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INCOMPETENCE. you ask the community to decide what to do. Pity! a team like yours with the resources they have, this delay and false concern and knowing our opinion, when in fact, is questionable. We are just walking crypto wallets. and why a single bridge (our garage in the ex.) affected the network so much to the point of almost breaking, and even more absurd, was THE WAY it happened and THE MOMENT OF THE MARKET! right!. it seems to me that being DISCIMULATE is the new SCAM of the century.
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CLARITY AND ZERO OBJECTIVITY. All I see is confusion and more confusion. In my ignorance I have reasonable knowledge in the area. imagine those who have little or almost nothing. Be clear and specific. Screw our opinion: guarantee what was guaranteed, our tokens ONLY. the ones that were stolen inside your “House” is ready! Don’t come with this COMMUNITY that decides!, we are not a community, pay a real economist, you are in the area of economics and finance, not in a social network… wake up, Security is the basic! . we are investors and we strongly believe in your product, which is FINANCIAL. IT’S AN ASSET, it moves. DO YOU KNOW what a FINANCIAL ASSET mr. @Stse; Or does the community have to explain it too? BE OBJECTIVE. CREATE A CLEAR AND ACCESSIBLE SCHEDULE and PUT BACK WHAT HAS BEEN STOLEN FROM US.
3 Likes
Overall my post is a combination of submitted proposals. I think the strength of Recovery One lies in combining and adding as many ideas together as possible. Every proposal makes an impact so please add or refine what’s below.
I have taken many existing proposals and organized them into 4 sections, Raise New Funds, Reduce Liability, Payback Lost Funds, and Support Health of the Chain. I also sprinkled in some of my own ideas but these were all sparked or collected from the proposals submitted and the Twitter Spaces so far.
To re-peg and return value to those affected will be a long journey but I think we should come up with as many ideas as possible to add to the proposal. This way the community can engage in the decision making and generate as much value as possible for the chain and stakeholders.
Hopefully this helps move the discussion forward. Thank you.
1. Raise New Funds
- Community Proposal 8 (Auction with % of bid forfeit)
1. Sell 4 of the 8 Bored Apes at auction
1. Utilize as a marketing opportunity to grow engagement with additional ways to get involved in ecosystem
2. Sign licensing agreements with the balance 4 Apes
2. Reduce Liability
- Community Proposal 5 (Repegging Node Validator)
1. Stake to buy and burn de-pegged assets
- Use funds raised above and portion of treasury to buy and burn de-pegged assets and repay wallets
3. Payback Lost Funds
- Community Proposal 15 (pay back small holders first)
1. Focus on smaller wallets to build positive sentiment
- Recovery One Proposal
The Recovery Token Mechanics
- A smart contract is created to accept depegged tokens in exchange for a
Recovery token, rONE.
a. rONE holders can redeem 3:1 ONE (22% parity) within 30 days of mint.
b. rONE can trade freely on exchanges.
c. rONE can be staked for rewards (15% APR) for the next 3 years to
receive blockchain emission and gas fees.
-
Early withdrawal of staked rONE will result in partial redemption.
-
At the end of the mandatory withdrawal period, users can redeem at 1:1 ONE.
Impacts (this will be amended to reflect current market prices)
● Up front $2.4M (100M ONE).
● 5% are retained for governance.
● We can assume participation is around 60% (taking into account some users
have exited), and parity at 66% floor, we will have to mint:
o $60M x 66% = $39.6M in ONE ( 1.65Bil ONE ) to be released in 3 years.
Gradually mint up to a 3-year date & deposit into the rONE contract
to smooth out circulating supply & give rONE value.
o Mint annually 247M ONE token to pay rONE interest rate.
Totaling 741M ONE token.
● Total 2,491M ONE
Questions regarding Recovery One Proposal
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What is stopping the downward sell pressure at the payout points with such a large supply of ONE all becoming liquid at once? It seems like a compression of the inflation of the supply as well as highly volatile depending on how many holders sell at any given point. Is Harmony prepared to support the funding if more than the assumed holders sell at the first opportunity than what is modeled and it costs more than $2.4M up front?
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Another question I have is, we are assuming a 3 year runway on Harmony to support a 3 year recovery effort, but as we all know, markets can change quickly. What are some options for incremental payouts of the reimbursement through a mechanism other than selling? This will also help the inflation compression question in my first point
4. Support Health of the Chain
- Community Proposal 16 (Holistic Recovery Plan)
1. Rebuild trust and confidence through concrete actions
- Community Proposal 6 (GameFi Suite)
1. Partner with existing and upcoming games on Harmony to airdrop exclusive NFTs to de-pegged or rONE asset holders
- Community Proposal 13 (encourage staking of One tokens)
1. Temporarily increase reward to stake reducing sell pressure
- Prioritize filling key roles
1. CFO, Head of Marketing, Security
- Create Board of Directors
2 Likes
I don’t think the community will accept a proposal unless the harmony team puts up a significant portion (50%+) of the treasury funds, and probably sells their bored apes too…
There’s too much negative sentiment and blame around the teams frivolous spending and mismanagement of the private keys in the first place. If we want to recover the project we need to see them take responsibility.
Imagine if your bank lost all their customers money. Then they said, actually we have money that we could use to pay a lot of you back but sorry, we need that TO PAY OURSELVES. Can’t we all just work together? We want a community solution.
7 Likes
An essential but overlooked part that is missing from this proposal is recovery of sentiment and trust.
We all want to forgive the Harmony Team, recover as much as possible, and move forward in a positive way, but this can’t happen until they’ve accepted responsibility and somehow redeemed themselves. We can be realistic about not using the entire treasury fund but most people feel that they are still trying to get off the hook and palm off responsibility to the community. I can’t see any proposal being accepted without that element.
EDIT: I just wanted to add that maybe this post came off as negative, but I appreciate the effort that went into this rONE plan and if the Harmony Team will come to the party in a meaningful way then I’d personally support it and continue building on and using Harmony.
3 Likes
These last 2 perfectly accurate comments from @GoodTimesBrad, combined with the announcement of the move of DeFi Kingdoms for Klaytn, conclude the debate which should end here.
If Harmony doesn’t pay at least 50% cash to repeg our stolen bridged assets, it’s definitely dead and I think that we have to open a new chapter: the one of legal action.
DM me on Twitter @MaewouOne (or email at harmonylegalsuite@tutanota.com) in order to join us in the Class Action Lawsuit for Negligence and Theft.
You’ll be asked to provide your 0x… impacted wallet address and personal identification later.
Notice: you can join our legal proceedings regardless of your citizenship. It is not necessary to be an American citizen
2 Likes
You are also afforded the opportunity for an early exit throughout the progression of the 3-year proposed timeframe. If ONE has gone up in value an early exit could lead to 100% recovery. You’re right, it is based on market conditions and faith in the ONE ecosystem’s future. If users have lost faith, we offer better-than-market price at the onset (22% parity) as an early exit strategy, as well as other mechanics to drive the rapid deflation of unbacked assets from market (which has the effect of lowering supply and driving up the price over time).
It’s not about having faith in the ONE ecosystem future! It’s about being realistic. There will be huge sell pressure that makes it extremely unlikely that the original loss will be compensated after 3 years.
Portraying the 22% as Better-than-market price is misleading. This is not the market price. This is what’s left because the team lost 100 million. Market price of USDC is 1$.
2 Likes
I understand you’re angry, but talking about ‘being realistic’ and ‘huge sell pressure’ in the same thread you’re advocating for 50% upfront in 30 days or whatever it is, is not very productive to put it lightly. Trying to argue sell pressure here with a three year plan that gains 50% more value from being staked over that full time…I mean there are some arguments against it I can imagine, but ‘sell pressure’ would not be on that list.
The idea that it’s ‘extremely unlikely’ that the loss would be compensated in three years suggests that the market is highly overvaluing ONE right now. If that’s what you think, then fine. I happen to disagree but you’re free to have that opinion. But the market would not value ONE at the market cap it has today if it didn’t expect returns over three years far in excess of the amount needed here.
And the market does not hold a grudge. Any hint of progress and development is welcomed. The market is not looking for revenge, it’s looking for growth. And at this point there’s a huge list of easy wins available for Harmony that just require some basic action. So in that sense there’s a lot of growth potential, not even considering further technical development and community growth.
The market price of USDC is $1, yes. The market price of 1USDC is not yet $1 as we all know. The market price of USDC is $1 because people believe they can redeem 1 USDC for 1 USD from Circle(and they often do just that). If for whatever reason people were not able to redeem USDC for USD then the market value of USDC would similarly not be $1. Yet everyone here wants 1USDC to be worth $1 and is working together towards that goal figuring out ways to repeg. Simply stating that the market price of USDC is $1 adds nothing and is again not productive. And blaming people at this point also really achieves nothing either.
Now the misleading part about the 22% as you say, is not that it’s better-than-market price. It’s actually misleading just how much better than market price it is for holders of a certain amount of different tokens with the current liquidity conditions. It becomes multiple times better than market price past a certain threshold for larger holders of various tokens. So I’d say the 22% is definitely something worth looking at early to discuss more specifics I think, as it’s a huge amount of liquidity.
But if you or anyone wants to focus that energy on providing solutions or actionable suggestions that don’t cause more harm than good for the project, we’re all in the same boat together so I think it would be welcomed. I do think we should be far past the anger and blame stages here and on to the rebuilding and restoring stage though.
2 Likes
I have approximately 600k ONE in locked loans in AAVE. Without trying to read a month’s worth of information in here, when/if/ever will there be a solution for me to unlock my loaned out ONE? Each day that passes I’m losing valuable interest that I’m no longer earning because a community majority decided they would prevent people from adding liquidity to the loans. Essentially locking the funds permanantly until a solution is presented.
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Even if that were true, developers do, and the price is driven by traffic.
How about if the Treasury puts up (much) more initially, then we mint back to Treasury over 3 years to replenish it? With >$50M in there they could go a long way towards a real repeg.
They won’t need to spend the majority of it within three years anyway
4 Likes